Repeat the previous problem for up-and-out puts assuming a barrier of $44. a. Compute the prices of

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Repeat the previous problem for up-and-out puts assuming a barrier of $44.
a. Compute the prices of knock-out calls with a barrier of $38.
b. Compute the ratio of the knock-out call prices to the prices of standard calls.
Explain the pattern you see.
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Derivatives Markets

ISBN: 978-0321543080

4th edition

Authors: Rober L. Macdonald

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