medium · Quantitative Finance derivatives
A European cash-or-nothing binary call option pays $100 if S_T > K.
If the stock price is $50, the strike is $52, expiry is 6 months, the rate is 4%, and the volatility is 35%, what is the option's value?
- $5.88
- $42.02
- $51.84
- $41.19
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