Question
PLZ POST ALL THE STEPS Suppose the exchange rate is $0.87/C$. Let r $ = 4%, r C$ = 6%, u = 1.32, d =
PLZ POST ALL THE STEPS
Suppose the exchange rate is $0.87/C$. Let r$ = 4%, rC$ = 6%, u = 1.32, d = 0.73, and T = 2. Using a 2-step binomial tree, calculate the value of a $0.80-strike American call option on the Canadian dollar.
| a. | $0.1361 | |
| b. | $0.1417 | |
| c. | $0.1278 | |
| d. | $0.1506 | |
| e. | $0.1475 |
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Global Finance And The Macroeconomy
Authors: A. Makin
1st Edition
0333736982, 978-0333736982
