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A stock price is currently $30. It is known that at the end of two months it will be either $27 or $34. The risk-free

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A stock price is currently $30. It is known that at the end of two months it will be either $27 or $34. The risk-free interest rate is 12% 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 S at this time? A stock price is currently $30. It is known that at the end of two months it will be either $27 or $34. The risk-free interest rate is 12% 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 S at this time

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