Marie. P.
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 Feb11 awarded Popular Question Sep13 awarded Commentator Sep13 comment Hedging future USD cost using different IR and forwards The next question would be how to construct a synthetic forward hedge, i.e. making use of the addition data on available 6m-interest rates. Sep11 awarded Teacher Sep10 answered How can one find an area of research in quantitative finance appropriate to write a masters thesis on? Sep9 revised Hedging future USD cost using different IR and forwards added 238 characters in body Sep9 asked Hedging future USD cost using different IR and forwards Sep9 answered conservative approach payoff table Mar26 awarded Popular Question Jul18 asked fetch from yahoo! finance database - varying number of ticks Jul9 awarded Yearling Jul9 asked Determining the portfolio return distribution to calculate CVaR/ES Jun25 revised Magnitude of Transaction Cost for Institutional Investors added 57 characters in body Jun24 revised Magnitude of Transaction Cost for Institutional Investors edited title Jun24 accepted Are minimum-risk and minimum-variance portfolios equivalent? Jun24 asked Magnitude of Transaction Cost for Institutional Investors Jun12 asked Are minimum-risk and minimum-variance portfolios equivalent? Dec20 revised price of a “Cash-or-nothing binary call option” deleted 193 characters in body Dec20 revised price of a “Cash-or-nothing binary call option” deleted 4 characters in body Dec20 comment price of a “Cash-or-nothing binary call option” I found that $\mathbb{Q}_t(S_T\geq K)=N(d_2)$, where $\mathbb{Q}$ denotes risk-neutral probability, which should solve part e): The present value is the discounted future payoff, which is just $p$ if $p$ is the probability that $S_T\geq K$. Hence, the current value is $e^{-r(T-t)}\mathbb{Q}_t(S_T\geq K)=e^{-r(T-t)} N(d_2)$