Problem 5. A European asset or nothing option that expires at timet pays its holder the asset value $(1) at time if S > K and pays 0 otherwise. Determine the no arbitrage cost of such an option as a function of the parameters 8, 1, K., What should be the cost of a call option if the strike price is equal to zero! Dunblom 6 Problem 5. A European asset or nothing option that expires at timet pays its holder the asset value $(1) at time if S > K and pays 0 otherwise. Determine the no arbitrage cost of such an option as a function of the parameters 8, 1, K., What should be the cost of a call option if the strike price is equal to zero! Dunblom 6