Consider a derivative whose payoff at expiration is s 2 t + 1 if st < 100 and s 2 t + st − 100 if st ≥ 100. assuming the volatility is σ, the riskfree rate r, and the spot price s0, compute the price of this derivative today. hint: write the derivative as 3 derivatives (a power option, an option and a digital option) and price each separately.

Aresearch study is studying the effects of a new drug for osteoporosis alzheimer's disease (ad) for women above the age of 65 years. a group of individuals with osteoporosis is randomized into two groups. one group is treated conventionally, and the second group is treated with the new medication. assessments are made at 3, 6, 12, 36, and 48 months. the conventionally treated group is assessed for ad using a serum blood test, and the treatment group is assessed for ad using a pet radiotracer that binds to beta-amyloid plaques. in comparing these 2 trial arms, the authors of the study may encounter which type of bias? a. selection bias on the risk of developing b. measurement bias c. confounding bias d. recall bias e. lead-time bias