Consider the European digital option that pays a constant H if the stock price is above strike priceX at maturity and zero otherwise. Assuming stock price .5′ follows the following SDE uncler physical measure d5 ? = as: + odBt Assuming the risk-free rate is constant 1*. Please write down the price of this option and explain how it is related to the price of the standard BIack-Scholes European call option.

Consider the European digital option that pays a constant H if the stock price is above strike priceX at maturity and zero otherwise. Assuming stock price .5′ follows the following SDE uncler physical measure d5 ? = as: + odBt Assuming the risk-free rate is constant 1*. Please write down the price of this option and explain how it is related to the price of the standard BIack-Scholes European call option.

Consider the European digital option that pays a constant H if the stock price is above strike priceX at maturity and zero otherwise. Assuming stock price .5′ follows the following SDE uncler physical measure d5 ? = as: + odBt Assuming the risk-free rate is constant 1*. Please write down the price of this option and explain how it is related to the price of the standard BIack-Scholes European call option.