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can you please answer this question with explanation of the math? Assume the spot Swiss franc is $0.7055 and the six-month forward rate is $0.7060.
can you please answer this question with explanation of the math?
Assume the spot Swiss franc is $0.7055 and the six-month forward rate is $0.7060. What is the Value of a 5x-month call oplion with a strike price of 50.6855 should sell for in a rational market? Assume the annualized six-month Eurodoliar rate is 3.50 percent. Assume the annualzed volatility of the Swiss franc is 14.20 percent, Use the binomial option-pricing model to value the call option. (Do not round intermediate calculotions. Round your answer to 2 decimel places. Enter your answer in cents per Swiss Fronc.) Step by Step Solution
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