9. (20 marks) Consider a 8-month dollar-denominated American put option on British pounds. a You are given that: 1- The current exchange rate is 1.43 US dollars per pound. 2- The strike price of the put is 1.56 US dollars per pound. 3- The volatility of the exchange rate is o=0.3. 4- The US dollar continuously compounded risk-free interest rate is 8%. 5- The British pound continuously compounded risk-free interest rate is 9%. - a) Using a 5-period binomial model, calculate the price of the put. 4/5 9. (20 marks) Consider a 8-month dollar-denominated American put option on British pounds. a You are given that: 1- The current exchange rate is 1.43 US dollars per pound. 2- The strike price of the put is 1.56 US dollars per pound. 3- The volatility of the exchange rate is o=0.3. 4- The US dollar continuously compounded risk-free interest rate is 8%. 5- The British pound continuously compounded risk-free interest rate is 9%. - a) Using a 5-period binomial model, calculate the price of the put. 4/5