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Let S(T) be the stock price at the maturity of various options whose payoffs are given below. K is the strike price of the options.
Let S(T) be the stock price at the maturity of various options whose payoffs are given below. K is the strike price of the options. For which of the options you do not need a stock price model to price the option?
Select one:
a. 2K 4S(T)
b. 3K 2S(T)2
c. Max[S(T)2 K2, 0]
d. Max[S(T) K, 0]
e. For all of the given options, a stock price model is needed to price the options
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