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Find the price of a 1-year European put option for 1 with strike price of 1.7$/ if current spot rate is 1.6$/ and next year
Find the price of a 1-year European put option for £1 with strike price of 1.7$/£ if current spot rate is 1.6$/£ and next year spot rate can be either 1.8$/£ or 1.4$/£. The U.S. interest rate is 8% and the U.K interest rate is 5%.
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The Price of the given option will be zero because at any of the given steps of the model this ...
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Fundamentals of Futures and Options Markets
Authors: John C. Hull
8th edition
978-1292155036, 1292155035, 132993341, 978-0132993340
