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and here is exericise 17.7 for reference. 17.8. Show that holding a European call option is equivalent to holding an asset-or-nothing call option (see Exercise
and here is exericise 17.7 for reference.
17.8. Show that holding a European call option is equivalent to holding an asset-or-nothing call option (see Exercise 17.7 above) and writing a cash- or-nothing call with A E, for the same expiry date. Use this to give an other way to value the asset-or-nothing call option in Exercise 17.7
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