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A foreign currency is currently worth 0.8 SEK and has a volatility of 12% per annum. The domestic and foreign risk-free rates of interest are
A foreign currency is currently worth 0.8 SEK and has a volatility of 12% per annum. The domestic and foreign risk-free rates of interest are 6% and 8%, respectively. Use a two-step binomial tree to value (a) a European 4-month call option with a strike price of 0.79 SEK
please explain the calculations in detail The answer is supposed to be 0.0245 SEK
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