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A Binary Option Pays of $100 If a Stock Price

question 3

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A binary option pays of $100 if a stock price is greater than its current value in three months. The risk-free rate is 3% and the volatility is 40%. Which of the following is its value?


Definitions:

Loop Of Henle

A section of the nephron tubule in the kidney, crucial for concentrating urine and conserving water.

Detrusor Muscle

A smooth muscle layer of the urinary bladder wall that contracts to expel urine.

Renal Pyramids

Cone-shaped tissues in the kidneys that process liquid waste and play a critical role in urine formation.

Renal Medulla

The innermost part of the kidney that consists of renal pyramids and nephrons where urine formation takes place.

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