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Suppose the exchange rate is $ 1 . 1 1 / . Let r$ = 5 % , r = 8 % , u =

Suppose the exchange rate is $1.11/. Let r$ =5%, r=8%, u =1.3, d =0.7, and T =1.5. Using a 2-step binomial tree, calculate the value of a $1.00-strike European call option on the euro.

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