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I need explanation, Thanks A European call with face value US $1000 and strike rate k=1.2 has underlying asset described by CCR notation X=1.2,u=1.1 and
I need explanation, Thanks
A European call with face value US $1000 and strike rate k=1.2 has underlying asset described by CCR notation X=1.2,u=1.1 and d=0.9. This call expires in one time step. The domestic return is currently 1.1 and the US return is currently 1.2. What is the premium of this call? $124.96 $105.00 $130.91 $9.09Step by Step Solution
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Options Futures And Other Derivatives
Authors: John C. Hull
7th Edition
0136015867, 9780136015864
