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Draw the tree for a put option on $20,000 with a strike price of $10,000. The current exchange rate is $1.00 = $2.00 and in
Draw the tree for a put option on $20,000 with a strike price of $10,000. The current exchange rate is $1.00 = $2.00 and in one period the dollar value of the pound will either double or be cut in half. The current interest rates are i$ = 3% and are is = 2%. Answer Selected Answer: Correct Answer: Response Feedback: American students will tend to miss this as they prefer to price everything in dollars; students who have traveled abroad tend to get this one right as they tend to lack that encumbrance. Question 22 1 out of 1 points
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