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hi tutor! I do not know how to solve these three problems. Thank you so much! Assume the riskfree bond Bi and the (non-dividend paying)

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hi tutor! I do not know how to solve these three problems. Thank you so much!

image text in transcribed
Assume the riskfree bond Bi and the (non-dividend paying) stock St follow the dynamics of the Black & Scholes model (with interest rate 7', stock drift ,u. and volatility a). (a) Consider the American binary option with maturity T and payo' at exercise time 7' equal to 1 ifS >K ST I: I '7' _ ( ) {0, if S.

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