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A stock price is currently $25. It is known that at the end of two months it will be either $23 or $27. The risk-free

A stock price is currently $25. It is known that at the end of two months it will be either $23 or $27. The risk-free interest rate is 10% per annum with continuous compounding. Suppose ST is the stock price at the end of two months. What is the value of a derivative that pays off ST*(ST-SO) at this time? OA. 14.26 OB. 12.57 O C. 31.21 O D. 28.16

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