(Solution) - Under the same assumptions as the previous problem show that -(2025 Original AI-Free Solution)
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Under the same assumptions as the previous problem, show that the value of a claim paying S2(T) if S1(T) > KS2(T) is
![](http://www.solutioninn.com/image/images9/727-B-B-F-M (4311).png)
In the next set of problems you will use Monte Carlo valuation. Assume that S0 = $41, K = $40, P0 = 0.9802, ? = 0.30, T = 0.25, and ? = 0.