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Please show work. In the following three problems, all the options have the same expiration time T and the same strike K. For the price
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In the following three problems, all the options have the same expiration time T and the same strike K. For the price of a barrier option, the argument is the value of the barrier. For example, Cup-and-in(50) is the price of an up-and-in call option with a barrier of 50. 2. Which of the following is true? Where C is the value of a regular call option. A. Cup-and-in (50) + Cup-and-out (50) = C B. Cup-and-in (50) Cup-and-out (50) = C C. -Cup-and-in (50) + Cup-and-out (50) = C D. -Cup-and-in (50) Cup-and-out (50) = C In the following three problems, all the options have the same expiration time T and the same strike K. For the price of a barrier option, the argument is the value of the barrier. For example, Cup-and-in(50) is the price of an up-and-in call option with a barrier of 50. 2. Which of the following is true? Where C is the value of a regular call option. A. Cup-and-in (50) + Cup-and-out (50) = C B. Cup-and-in (50) Cup-and-out (50) = C C. -Cup-and-in (50) + Cup-and-out (50) = C D. -Cup-and-in (50) Cup-and-out (50) = CStep by Step Solution
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