One Australian dollar is worth $0\mathrm{.}95$ U$.$S$.$ Dollars. This exchange rate has a volatility of $15\%.$ The Australia risk$-$free rate is $7\%$ and the U$.$S$.$ risk$-$free rate is $5\%.$ Using a $20$

step binomial models to value the following options with strike prices $1\mathrm{.}00$ and three months to expiration. The European call is worth type your answer... cents,

the European put is worth

type your answer...

cents, the American call is worth

zents, and the American put is worth

Quizzes $2$

cents. Note: $1$ dollar equals $100$ cents!