Price a digital cash call by using the martingale approach assuming all Black and [K,S, >...
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Price a digital cash call by using the martingale approach assuming all Black and [K,S, > K T. Scholes assumptions hold. The payoff function for the digital cash call is (0,S, <K Price a digital cash call by using the martingale approach assuming all Black and [K,S, > K T. Scholes assumptions hold. The payoff function for the digital cash call is (0,S, <K
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Please take into account the quantitative relation t StBt From the binomial case we all know that th... View the full answer
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