Question
The premiums for 3 month call and put options on euros are listed below: Strike price Call premium Put premium 1.20 0.05 0.01 The interest
The premiums for 3 month call and put options on euros are listed below:
Strike price Call premium Put premium 1.20 0.05 0.01
The interest rate in dollars is 4% per annum. (That will be 1% for a 3 month period.) What is the 3 month ahead forward rate that is consistent with put call parity?
Round the answer to two decimal places and report it without the $ symbol.
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
