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Question I Suppose that the exchange rate is $0.92/e. Let rs 4% , and re = 3%, u = 1.2, d = 0.9, T =

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Question I Suppose that the exchange rate is $0.92/e. Let rs 4% , and re = 3%, u = 1.2, d = 0.9, T = 0.75, number of binomial periods 3, and K $0.85. Use Binomial Option pricing to answer the following two questions Use the same inputs as in the previous (first) question, except that K = $1.00. (a) What is the price of a 9-month European call? (b) What is the price of a 9-month American call? Question I Suppose that the exchange rate is $0.92/e. Let rs 4% , and re = 3%, u = 1.2, d = 0.9, T = 0.75, number of binomial periods 3, and K $0.85. Use Binomial Option pricing to answer the following two questions Use the same inputs as in the previous (first) question, except that K = $1.00. (a) What is the price of a 9-month European call? (b) What is the price of a 9-month American call

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