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On the market, the premium for a European call for GBP (British pounds) with expiration of 4 months and exercise price of $1.4 /GBP is
On the market, the premium for a European call for GBP (British pounds) with expiration of 4 months and exercise price of $1.4 /GBP is $14. The underlying value of the currency is $ 1.33 /GBP. How_much_is the value of a put, using put-call parity, if the U.S. risk free rate is 1.8% and the British is 1.5%?
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Risk Management and Financial Institutions
Authors: Hull John
4th edition
1118955943, 978-1118955949
