Islamic Finance
Dhari’ah
July 31, 2021
Islamic Finance
Daruriyyat
July 31, 2021

An option in which the holder has the right to receive a payoff reflected in a range, or the difference between the highest and lowest levels an underlying achieved during the life of the option. This option, essentially a combination of lookback put(s) and lookback call(s), pays off an amount equal to the observed range of its underlying asset over its life.

Lookback straddles are also known as hi-lo options or range options.

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