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1.The euro is currently trading at 1.30 euros per dollar.The interest rate on the US Treasury Bill is 0.020 and the risk free interest rate
1.The euro is currently trading at 1.30 euros per dollar.The interest rate on the US Treasury Bill is 0.020 and the risk free interest rate in Europe is 0.019.What is the arbitrage free future exchange rate between the euro and the U.S. dollar for two years in the future in euros per dollars
2.An investor buys a call option on EBAY with a strike price 9, and a call premium of 1.3.If EBAY expires at 25, what profit did the investor make? Each option covers 100 shares of the underlying stock.
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