Question
On the market,the premium for a European call for GBP(Britishpounds)withexpiration of 7months andexercise price of $1.3 /GBP is $17. The underlying value of the currency
On the market,the premium for a European call for GBP(Britishpounds)withexpiration of 7months andexercise price of $1.3 /GBP is $17. 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 1.9% and the British is 2.7%?
Provide your answer rounded to two decimals.
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International Finance Putting Theory Into Practice
Authors: Piet Sercu
1st edition
069113667X, 978-0691136677
