Question
Suppose the spot exchange rate is $1.33 per British pound and the strike on a dollar denominated pound call is $1.25. Assume r = 0.50%
Suppose the spot exchange rate is $1.33 per British pound and the strike on a dollar denominated pound call is $1.25. Assume r = 0.50% (continuously compounded annual rate), rf = 2.00% (continuously compounded annual rate), = 0.20 and the option expires in one year. What is the put option price?
Question options:
$0.157 | |
$0.423 | |
$0.074 | |
$0.092 |
Suppose the 360-day futures price on crude oil is $115.00 per barrel and the volatility is 30.0%. Assume continuously compounded annual interest rates are 5.5%. What is the price of a $125 strike call futures option that expires in 360 days? ((Use 360 days as one-year convention.)
Question 15 | 0 / 5.55 points |
Question options:
$13.28 | |
$8.24 | |
$11.62 | |
$9.33 |
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