Question
Questions 11-14 are based on the following information: Today the spot exchange rate is equal to 2$/ and next year it can either go up
Questions 11-14 are based on the following information: Today the spot exchange rate is equal to 2$/ and next year it can either go up to 2.2$/ or down to 1.82$/. Domestic ($) interest rate is 9% and foreign () interest rate is 5%
11) Find the price of 1-year European call option on 1 with strike price of 2.3$/
12) Find the price of 1-year European call option on 1 with strike price of 1.9$/
13) Find the price of 1-year European call option on 1 with strike price of 1.7$/
14) Find the price of 1-year European put option on 1 with strike price of 2.1$/
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