Question
Suppose the exchange rate is $0.87/C$. Let r $ = 4%, r C$ = 6%, u = 1.32, d = 0.73, and T = 2.
| 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. | |||||||||||||
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The Complete Direct Investing Handbook
Authors: Kirby Rosplock
1st Edition
1119094712, 978-1119094715
