Here, I replace the cases environment with a \left\{\!\begin{aligned}...\end{aligned}\right\}. The \! seems necessary to overcome a small space introduced, I think by the leading &.
\documentclass[12pt]{article}
\usepackage{amsmath}
\usepackage{amssymb}
\begin{document}
\begin{equation*}
\hat{C}(\hat{S},1) = \frac{1}{E} C(S,T) =
\left\{\!\begin{aligned}
&0 &\text{ if } S<E,\\[1ex]
&\frac{S}{2E} &\text{ if } S=E,\\[1ex]
&\frac{S}{E} &\text{ if } S>E.
\end{aligned}\right\}
\end{equation*}
\end{document}

If one wanted to preserve the \textstyle of the cases environment,
\documentclass[12pt]{article}
\usepackage{amsmath}
\usepackage{amssymb}
\begin{document}
\begin{equation*}
\hat{C}(\hat{S},1) = \frac{1}{E} C(S,T) =
\left\{\!\begin{aligned}
&0 &\text{ if } S<E,\\[1ex]
&\textstyle\frac{S}{2E} &\text{ if } S=E,\\[1ex]
&\textstyle\frac{S}{E} &\text{ if } S>E.
\end{aligned}\right\}
\end{equation*}
\end{document}

equation*environment to allow alignment as well? Edit: I found. We can just use\begin{aligned}directly after\begin{equation*}. – Felix Crazzolara Feb 23 '20 at 19:29equation*plusaligned. – Steven B. Segletes Feb 23 '20 at 19:41