Editing Lookback option (section)

==Lookback option with fixed strike==
As for the standard [[European option]]s, the option's strike price is fixed. The difference is that the option is not exercised at the price at maturity: the payoff is the maximum difference between the optimal underlying asset price and the strike. For the call option, the holder chooses to exercise at the point when the underlying asset price is at its highest level. For the put option, the holder chooses to exercise at the underlying asset's lowest price. The payoff functions for the lookback call and the lookback put, respectively, are given by:
:<math> LC_{fix}=\max(S_{max}-K,0),   ~~ \text{and} ~~   LP_{fix}=\max(K-S_{min},0), </math>
where <math>S_{max}</math> is the asset's maximum price during the life of the option, <math>S_{min}</math> is the asset's minimum price during the life of the option, and <math>K</math> is the strike price.