Question: 8. [3 marks] Define a digital call de and a digital put d, with a strike price K and exercise time T to have payouts

 8. [3 marks] Define a digital call de and a digital

8. [3 marks] Define a digital call de and a digital put d, with a strike price K and exercise time T to have payouts so if S K 1 if SK and dp(S.T) = 1 if S

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