Question
Find the price of a 6-month European call option on 1 with strike price 2.02$/ if the current exchange rate is 2$/, in 6 month
Find the price of a 6-month European call option on 1 with strike price 2.02$/ if the current exchange rate is 2$/, in 6 month it can increase to 2.1$/ or decrease to 1.8$/. The U.S. ($) interest rate is 5% and UK () interest rate is 8%. Keep at least 4 decimal digits in your answer
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W Melicher, Edgar Norton
13th Edition
0470128925, 9780470128923
