Assume that st is the price at the end of 3 months what is


A stock price is currently $20, and at the end of 3 months it will increase or decrease by 10%. The risk free rate is 5% per year (continuous compounding). Assume that ST is the price at the end of 3 months. what is the value of the derivative that pays off ln(ST) at this time?

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Finance Basics: Assume that st is the price at the end of 3 months what is
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