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4 A financial derivative on a share whose current price is 110 is issued by an investment bank. At expiry in 3 months' time, the

4 A financial derivative on a share whose current price is 110 is issued by an investment bank. At expiry in 3 months' time, the derivative will pay f(S) where S is the price of the stock and f(S)={log(S105)0ifS>105ifS

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