Calculate the value of a perpetual call that is knocked out when the underlying asset price falls
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Calculate the value of a perpetual call that is knocked out when the underlying asset price falls to a boundary sL. What is the optimal exercise boundary for the call? How doesthe optimal boundary comparetothe optimal boundary when there is no knock-out feature and why? Answerthe same questions for a perpetual put that is knocked out when the underlying asset price rises to a boundary sH.
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