Question: 30 points) Under the standard stock price model: dS(t)=rS(t)dt+S(t)dW~(t) a. Derive the price of an option which pays 1TL at time T if S(T)K1 and

30 points) Under the standard stock price model: dS(t)=rS(t)dt+S(t)dW~(t) a. Derive the price of an option which pays 1TL at time T if S(T)K1 and pays 2TL if S(T)>K2, where 0

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