Consider the following exotic option whose payoff at maturity is given by the square root of the stock price less the strike price if it has a positive value,zero otherwise,that is: max[$\surd$S(2)- K,0].
Using the above data except for assuming a new strike price is $5,today's arbitrage-free price of this exotic option is:

Question

Quizplus · Accepted Answer

The Answer of Consider the following exotic option whose payoff at maturity is given by the square root of the stock price less the strike price if it has a positive value,zero otherwise,that is: max[$\surd$S(2)- K,0].
Using the above data except for assuming a new strike price is $5,today's arbitrage-free price of this exotic option is:

Consider the Following Exotic Option Whose Payoff at Maturity Is √\surd√

Consider the Following Exotic Option Whose Payoff at Maturity Is $\surd$