Question: A binary option pays off R 2 4 0 if a stock price is greater than R 5 0 in six months. Tge current stock

A binary option pays off R240 if a stock price is greater than R50in six months. Tge current stock price is R43, and its volality is 35% per annum. The risk free rate is 6% and the expected return on the stock is is 11.5%. Calculate the value of this option

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