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Question 4 Assume the risk-free bond B, and the stock Se follow the dynamics of the Black & Scholes model (with interest rate r, stock

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Question 4 Assume the risk-free bond B, and the stock Se follow the dynamics of the Black & Scholes model (with interest rate r, stock drift p and volatility o). Calculate the price at time t = 0 of a financial derivative with maturity T and payoff (K - )+

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