You are asked to create an exotic option which pays the value of the underlying if the
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Question:
A plain vanilla call for the same underlying is priced at $20, and a Binary Cash-or-Nothing call is priced at $0.50 - for the same strike and maturity.
What should the price of the new exotic option be, in dollars and cents ?
Related Book For
Corporate Finance
ISBN: 978-0071339575
7th Canadian Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Ro
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