(Cash-or-Nothing Option) What is the value of an option that pays $100 if the stock price exceeds...

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(Cash-or-Nothing Option) What is the value of an option that pays $100 if the stock price exceeds a prespecified strike at maturity? Assume that the initial stock price is $100, maturity is one year, volatility is 50%, and the strike is $110. Assume also that the risk-free rate of interest is zero.

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