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The current spot exchange rate is $1.25 = ?1.00 and thethree-month forward rate is $1.30 = ?1.00. Consider a three-monthAmerican call option on ?62,500 with
The current spot exchange rate is $1.25 = â?¬1.00 and thethree-month forward rate is $1.30 = â?¬1.00. Consider a three-monthAmerican call option on â?¬62,500 with a strike price of $1.20 =â?¬1.00. 2 answers
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