Adigital option is one in which the payoff depends in a discontinuous way on the asset price. The simplest example is the cash-or-nothing option, in which the payoff to the holder at maturity T is X1{ST>K} where X is some prespecified cash sum. Suppose that an asset price evolves according to the binomial model in which, at each step, the asset price moves from its current value Sn to one of Snu and Snd. As usual, if T denotes the length of each time step, d < erT < u. Find the time zero price of the above option. You may leave your answer as a sum.

In a study of the relationship between socio-economic class and unethical behavior, 129 university of california undergraduates at berkeley were asked to identify themselves as having low or high social-class by comparing themselves to others with the most (least) money, most (least) education, and most (least) respected jobs. they were also presented with a jar of individually wrapped candies and informed that the candies were for children in a nearby laboratory, but that they could take some if they wanted. after completing some unrelated tasks, participants reported the number of candies they had taken. it was found that those who were identiď¬ed as upper-class took more candy than others. in this study, identify: (a) the cases, (b) the variables and their types, (c) the main research question, (d) identify the population of interest and the sample in this study, and (e) comment on whether or not the results of the study can be generalized to the population, and if the ď¬ndings of the study can be used to establish causal relationships.