Question: Consider the following exotic option whose payoff at maturity is given by the square root of the stock price less the strike price if it

Consider the following exotic option whose payoff at maturity is given by the square root of the stock price less the strike price if it has a positive value, zero otherwise:

max[ S(2) –K,0].

Using the preceding data except for assuming a new strike price is $5, determine the value of this exotic option under the assumption of no- arbitrage.

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