Consider a risky asset valued (S_{0}=$ 3) at time (t=0) and taking only two possible values (S_{1}
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Consider a risky asset valued \(S_{0}=\$ 3\) at time \(t=0\) and taking only two possible values \(S_{1} \in\{\$ 1, \$ 5\}\) at time \(t=1\), and a financial claim given at time \(t=1\) by
Is \(C\) the payoff of a call option or of a put option? Give the strike price of the option.
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Related Book For 
Introduction To Stochastic Finance With Market Examples
ISBN: 9781032288277
2nd Edition
Authors: Nicolas Privault
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