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Currently, the spot rate for the Brazilian Real is $0.2895 per BRL. If an American call option on the Brazilian Real with a strike price
Currently, the spot rate for the Brazilian Real is $0.2895 per BRL. If an American call option on the Brazilian Real with a strike price of $0.275 per BRL is trading for $200 per contract, calculate the intrinsic value and the time value of this call option.Assume a contract size of BRL10,000.
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