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Share > Copy link 1 of 1 3. (10 points) Consider a 6-month dollar-dominated American put option ish pounds. You are given that (a) The
Share > Copy link 1 of 1 3. (10 points) Consider a 6-month dollar-dominated American put option ish pounds. You are given that (a) The current exchange rate is 1.35 USD per pound. (b) The strike price of the put is 1.10 USD px pound. (c) The volatility of the exchange rate is 30%. (d) The US dollar continuously compounded risk-free interest rate is 3%. (e) The British pound continuously compounded risk-free interest rate is 4%. Using a three-period Jarrow-Rudd tree, calculate the premium of the put. Share > Copy link 1 of 1 3. (10 points) Consider a 6-month dollar-dominated American put option ish pounds. You are given that (a) The current exchange rate is 1.35 USD per pound. (b) The strike price of the put is 1.10 USD px pound. (c) The volatility of the exchange rate is 30%. (d) The US dollar continuously compounded risk-free interest rate is 3%. (e) The British pound continuously compounded risk-free interest rate is 4%. Using a three-period Jarrow-Rudd tree, calculate the premium of the put
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