Question: Repeat the previous problem for up-and-out puts assuming a barrier of $44. a. Compute the prices of knock-out calls with a barrier of $38. b.

Repeat the previous problem for up-and-out puts assuming a barrier of $44.
a. Compute the prices of knock-out calls with a barrier of $38.
b. Compute the ratio of the knock-out call prices to the prices of standard calls.
Explain the pattern you see.

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