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The current value of the British pound is $1.40 and the volatility of the pound-dollar exchange rate is 15% per annum. Brian used the explicit

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The current value of the British pound is $1.40 and the volatility of the pound-dollar exchange rate is 15% per annum. Brian used the explicit finite difference method to value an American call option with an exercise price of $1.62 and a time to maturity of one year. The risk-free rates of interest in the United States and the United Kingdom are 6% per annum and 9% per annum, respectively. By setting exchange rates intervals as 0.20 between 0.80 and 2.40 and time intervals as 3 months, he got the following grids. Which number is his answer? Stock Price Time to Maturity (Months) ($) 9 6 3 0 12 0.780 0.780 0.780 0.780 0.780 2.40 2.20 2.00 0.580 0.580 0.580 0.580 0.580 0.380 0.380 0.380 0.380 0.380 0.180 0.180 0.180 0.180 0.180 0.062 0.054 0.043 0.027 0.000 1.80 1.60 1.40 1.20 0.011 0.007 0.003 0.000 0.000 0.001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 1.00 0.80 The current value of the British pound is $1.40 and the volatility of the pound-dollar exchange rate is 15% per annum. Brian used the explicit finite difference method to value an American call option with an exercise price of $1.62 and a time to maturity of one year. The risk-free rates of interest in the United States and the United Kingdom are 6% per annum and 9% per annum, respectively. By setting exchange rates intervals as 0.20 between 0.80 and 2.40 and time intervals as 3 months, he got the following grids. Which number is his answer? Stock Price Time to Maturity (Months) ($) 9 6 3 0 12 0.780 0.780 0.780 0.780 0.780 2.40 2.20 2.00 0.580 0.580 0.580 0.580 0.580 0.380 0.380 0.380 0.380 0.380 0.180 0.180 0.180 0.180 0.180 0.062 0.054 0.043 0.027 0.000 1.80 1.60 1.40 1.20 0.011 0.007 0.003 0.000 0.000 0.001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 1.00 0.80

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