Prices for 6-month 60-strike European up-and-out call options on a stock S are available. Below is a table of option prices with respect to various B, the level of the barrier. Here, S(0) = 50.

Consider a special 6-month 60-strike European “knock-in, partial knock-out” call option that knocks in at B₁ = 70, and “partially” knocks out at B₂ = 80. The strike price of the option is 60. The following table summarizes the payoff at the exercise date:

Calculate the price of the option. 

(A) 0.6289  

(B) 1.3872

(C) 2.1455

(D) 4.5856

(E) It cannot be determined from the information given above.

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B 60 70 80 90 ∞ Price of up-and-out call 0 0.1294 0.7583 1.6616 4.0861