Question: hi tutor! I do not know how to solve these three problems. Thank you so much! Assume the riskfree bond Bi and the (non-dividend paying)

hi tutor! I do not know how to solve these three

hi tutor! I do not know how to solve these three problems. Thank you so much!

problems. Thank you so much! Assume the riskfree bond Bi and the

Assume the riskfree bond Bi and the (non-dividend paying) stock St follow the dynamics of the Black & Scholes model (with interest rate 7', stock drift ,u. and volatility a). (a) Consider the American binary option with maturity T and payo' at exercise time 7' equal to 1 ifS >K ST I: I '7' _ ( ) {0, if S.

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