Question: A binary option pays $1 when St>K, $0 otherwise. Assume zero risk free rate, and the stock follows Brownian motion with so = 100, K=110.

A binary option pays $1 when St>K, $0 otherwise. Assume zero

A binary option pays $1 when St>K, $0 otherwise. Assume zero risk free rate, and the stock follows Brownian motion with so = 100, K=110. European binary price=$0.1, T=1 year. What is the price of an American binary? A binary option pays $1 when St>K, $0 otherwise. Assume zero risk free rate, and the stock follows Brownian motion with so = 100, K=110. European binary price=$0.1, T=1 year. What is the price of an American binary

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