A currency option which is enhanced by a lookback feature (lookback option), granting the holder the right to trade a specific amount of foreign currency at the most favorable exchange rate observed at currency markets during the option’s life (or lookback period). The lookback period typically covers the entire option’s life. The option’s strike will be adjustable according to daily exchange rate movements over the option’s life. The minimum value of a lookback option at expiration will be that of a regular option with a strike price equal to the underlying’s exchange rate at the trade date.