Repeat the previous problem for up-and-out puts assuming a barrier of $44. a. Compute the prices of
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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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a b Table Three for the prices and ratio The longer the time to expiration ...View the full answer
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