Question: For each k {0, 1, 2, . . . , 30} the symbol S(k) denotes the price of the stock at time k. A European
For each k {0, 1, 2, . . . , 30} the symbol S(k) denotes the price of the stock at time k. A European call option with strike 90 and expiration n = 30 costs 15. A European put option with strike 100 and expiration 30 costs 11. Both options have the same stock as their underlying security. What is the price of the security whose payoff structure is
Payoff = 7S(30) 630, if S(30) > 100,
S(30) 30, if 90 S(30) 100,
600 6S(30), if S(30) < 90
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