= 3. A stock is trading at $100, with 8 = 0.02, 0 = 0.3, r = 8%. A new exotic option will pay the following 0 if S 105 a) Graph the payoff b) Find the cost. Hint: you will need to combine some options. = 3. A stock is trading at $100, with 8 = 0.02, 0 = 0.3, r = 8%. A new exotic option will pay the following 0 if S 105 a) Graph the payoff b) Find the cost. Hint: you will need to combine some options