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The stock price today of a company is $10. The company is not expected to pay any dividends. A European option exists on the stock

The stock price today of a company is $10. The company is not expected to pay any dividends. A European option exists on the stock of the company with the following non-standard payoff.

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In your own words describe an approach and any proposed model or models to price this option? Also note if you could still assume risk neutrality and if so why?

Share price of the Company at Maturity = ST ST >$10.00 $5.00

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