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A stock price has an expected return of 9 % and a volatility of 2 5 % . It is currently $ 4 0 .

A stock price has an expected return of 9% and a volatility of 25%. It is currently $40. What is the price of a binary option that pays $100 if the stock price in 6 month is higher than $50? Assume the risk-free rate is zero.
a.15.44
b.86.35
c.13.65
d.8.84
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