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1. An exotic option, with K = 40, pays off 0 when St is 50, -5 when ST = 45 and 1 when ST =

1. An exotic option, with K = 40, pays off 0 when St is 50, -5 when ST = 45 and 1 when ST = 39. Which of the following best describes the option? a. Gap call b. Up-and-in put c. Average strike Asian call d. Gap put e. Down-and-out call

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