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5. (*) A non-dividend paying stock has price 50 and volatility 35%. The risk-free interest rate is 8% per annum continuously compounded. Find the price

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5. (*) A non-dividend paying stock has price 50 and volatility 35%. The risk-free interest rate is 8% per annum continuously compounded. Find the price of a Butterfly option that in three years pays off 0, ST 20, 40 ST, 0, if ST

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