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5.1. The current exchange rate of dollars to euros is $18/11 The risk free rate for dollars is ru-3%. The risk free rate for euros
5.1. The current exchange rate of dollars to euros is $18/11 The risk free rate for dollars is ru-3%. The risk free rate for euros is re = 4%. The dollar denominated price of an option to purchase 22 for S32 in six months is (a) Determine the euro denominated price of a put option to sell S22 in six months using (b) Determine the euro denominated price of a put option to sell S33 in six months using (c) Determine the euro denominated price of a call option to buy 833 in six months using $5.09. the given strike. (Hint: the strike comes from the statement 22 for S32.) the given strike. the given strike
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