Confirm that is the correct generalized formula for a European binary call option. C(K, T) = eT-1(d_)

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Confirm that

is the correct generalized formula for a European binary call option.

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A First Course in Quantitative Finance

ISBN: 978-1108419574

1st edition

Authors: Thomas Mazzoni

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Question Posted: Dec 12, 2018 12:07 PM

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Confirm that is the correct generalized formula for a European binary call option. C(K, T) = eT-1(d_)

Question:

C(K, T) = e¯«T-1Þ(d_)

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This is easy to see because unde...View the full answer

A First Course in Quantitative Finance

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