Consider a European-style call option maturing in five months, with strike price (K= 40), written on a
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Consider a European-style call option maturing in five months, with strike price \(K=€ 40\), written on a stock share with current price \(S(0)=€ 35\). We (very unrealistically) assume that the uncertainty about the stock price at maturity \(T=512\) may be represented by eight equally likely scenarios: \(S(T)\) 
. Find the expected value of the option payoff.
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It seems like the question was cut off and the scenarios for ST were not provided In opti...View the full answer
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Related Book For 
An Introduction To Financial Markets A Quantitative Approach
ISBN: 9781118014776
1st Edition
Authors: Paolo Brandimarte
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