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

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

8. [3 marks] Define a digital call d. and a digital put do with a strike price K and exercise time I to have payouts 0 de(s, t)= { : 0 if S K 1 if $ > K and dp(S, T) = 4,(5,1)={: if S > K if S

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