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Review the derivation of digital calls and puts in the study guide and use these results to derive a general expression for an option position

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Review the derivation of digital calls and puts in the study guide and use these results to derive a general expression for an option position that at expiration pays (i) nothing below USD 35, (ii) one (1) unit of currency (e.g., 1 USD) between USD 35 and USD 60, and (iii) nothing above USD 60. Note: digital options have come up in job interviews and financial economics exams. It is a good idea to be familiar with these derivations. Review the derivation of digital calls and puts in the study guide and use these results to derive a general expression for an option position that at expiration pays (i) nothing below USD 35, (ii) one (1) unit of currency (e.g., 1 USD) between USD 35 and USD 60, and (iii) nothing above USD 60. Note: digital options have come up in job interviews and financial economics exams. It is a good idea to be familiar with these derivations

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