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The second picture is the outline of the class to give you a general idea of the class. 3 Option price bounds Problem 3.1 (2

The second picture is the outline of the class to give you a general idea of the class.

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3 Option price bounds Problem 3.1 (2 points) Consider three options all on the same underlying asset S, and the same maturity date T: A vanilla call option with Strike K whose current price is 10$, A knock-out barrier call option whose payoff St K is only provided if the stock price never reaches the threshold B throughout the if of the option, where B

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