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Q21. An investor in Hong Kong considers buying a European put on Euro. The risk-free interest rates in Hong Kong and Europe are 2% and

Q21. An investor in Hong Kong considers buying a European put on Euro. The risk-free interest rates in Hong Kong and Europe are 2% and 1% per annum, respectively. The spot exchange rate is 9.20 Hong Kong Dollar (HKD) per Euro (EUR). The put has a strike price of 9.30 HKD per EUR and will expire three years later. Find the range of the put prices that do not allow any arbitrage.

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