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4, we continue to consider a stock price that is lognormal with volatility . A squared call with strike K and maturity T is an
4, we continue to consider a stock price that is lognormal with volatility . A "squared call" with strike K and maturity T is an option with payoff Give a formula for its value at time 0, analogous to the standard formula soN(d) Ke N(d2) for the value of an ordinary call. (Hint: use the fact that (soe K 4, we continue to consider a stock price that is lognormal with volatility . A "squared call" with strike K and maturity T is an option with payoff Give a formula for its value at time 0, analogous to the standard formula soN(d) Ke N(d2) for the value of an ordinary call. (Hint: use the fact that (soe K
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