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(30 points) The payoff function of a contract at maturity T is given below, C(ST,T)={lnKST,ST>K0,STK where K is the strike price and St is the

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(30 points) The payoff function of a contract at maturity T is given below, C(ST,T)={lnKST,ST>K0,STK where K is the strike price and St is the current price of a risky stock. The stoc does not pay dividends. K is a constant parameter. In the Black-Scholes framework, price this contract by partial differential equation approach. You need to show clear derivation steps

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