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Suppose the exchange rate is $ 1 . 2 5 / , the euro - denominated continuously compounded interest rate is 4 % , the

Suppose the exchange rate is $1.25/, the euro-denominated continuously compounded interest
rate is 4%, the dollar-denominated continuously compounded interest rate is 6%, and the price
of 2-year $1.20-strike European call on the euro is $0.19. What is the price of a 2-year $1.20-
strike European put on the Euro? Hint: $0.10

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