Question: Compute if the dividend on the CD is 0 and the payoff is $1300 max(0, 1300 S5.5) + max(0, S5.5

Compute λ if the dividend on the CD is 0 and the payoff is $1300 − max(0, 1300 − S5.5) + λ × max(0, S5.5 − 2600) and the initial price is to be $1300.

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