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iv) The spot EURMAD is 11.48 (One Euro is for 11.48 MADS). The price of a put to sell one Euro at 10.18 MADS
iv) The spot EURMAD is 11.48 (One Euro is for 11.48 MADS). The price of a put to sell one Euro at 10.18 MADS in 11 months is 1.22 MADS. The risk-free rate on the MAD is 6.65% and the risk-free rate on the Euro is 5.36%. What should the price of a call on the EURMAD, that has the same strike price and expiration as the put, be? (7.5 pts)
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
