ASM Exercise 14.16?

[floral]

Hi, dear all
I totally have no idea about ASM exercise 14.16. I thought I could just calculate the premium for the gap call option directly since all the parameters in BS formula are known.
I couldn't follow the solution. Could somebody help me out?

Thank you so much!
Floral

[Abraham Weishaus]

My, you're making a lot of progress!

See the errata for a fixed exercise & solution.

[floral]

Thank you so much for the updated solution! That's a great help for MFE-ers!

Thanks. :)