TD - Initial premiums for binary options

Name: TD - Initial premiums for binary options
Brand: Comprehensive Study Materials for Students of All Courses
Price: 7.85 AUD
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$7.85 AUD

QUESTION
Recalculate the initial premiums if the options of question 1 are binary options which pay
payoff (Sr) =
(
$1, Sr ≥ K
o, Sr < K

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