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What is the value a derivative that pays off P100 if the price of an asset is greater than P1000 and zero otherwise? assume that
What is the value a derivative that pays off P100 if the price of an asset is greater than P1000 and zero otherwise? assume that the current price of the asset is P960, the risk free interest rate is 8% per annum, the dividend yield on the asset is 3% per annum and the volatility of the asset is 20%.
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