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The premium on a 90-day A$ put option is 0.30 cents per A$ at a strike price of $0.75. The 90- day forward rate is
The premium on a 90-day A$ put option is 0.30 cents per A$ at a strike price of $0.75. The 90- day forward rate is A$ 1 = $0.77 and the quarterly US interest rate is 2.5 percent. What should be the equilibrium price of a 90-day A$ call option with an exercise price of $0.75?
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Fundamentals Of Financial Management
Authors: James C. Van Horne
10th Edition
0138596875, 9780138596873
