Verify that equation (23.7) satisfies the appropriate boundary conditions for Pr(ST H and ST >K). Discuss.

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Verify that equation (23.7) satisfies the appropriate boundary conditions for Pr(ST ≤ H and ST >K). Discuss.

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Derivatives Markets

ISBN: 978-0321543080

4th edition

Authors: Rober L. Macdonald

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Question Posted: Dec 18, 2015 05:17 AM

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Verify that equation (23.7) satisfies the appropriate boundary conditions for Pr(ST H and ST >K). Discuss.

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If S H d 6 d 8 implying N d 6 N d 8 This makes the probability given ...View the full answer

Derivatives Markets

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