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Suppose the stock price follows a geometric Brownian motion with initial price So=28, expected return u=0.10, volatility o=0.80. The risk-free rate is r=0.02. What is

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Suppose the stock price follows a geometric Brownian motion with initial price So=28, expected return u=0.10, volatility o=0.80. The risk-free rate is r=0.02. What is the price of a binary option with a maturity of two years that pays $100 if the stock price at maturity St

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