# Value at expiry of a lookback put option with variable strike

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## Description

Formula for the calculation of the value at expiry of a lookback put option with a variable strike

## Formula

$LP_{var}=max\left ( S_{max}-S_{T},0 \right ) \$

## Legend

 $S_{max}\$ Maximum price of the underlying during the option's lifetime $S_{T}\$ Price of the underlying at expiry date T of the option