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The currency of Japan is the yen (JPY). The currency of Turkey is the lira (TRY). In Japan, the spot price of one Turkish lira
The currency of Japan is the yen (JPY). The currency of Turkey is the lira (TRY). In Japan, the spot price of one Turkish lira is 7 yen. The risk-free rate of return in Japan is 0%, and the risk-free rate of return in Turkey is 15% (both continuously-compounded, per year). In Japan, one-year European calls on the Turkish lira, with a strike of 7.7 yen, cost 0.15 yen. The yen price of one-year European puts on the Turkish lira with the same strike price must be closest to
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