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The spot EURMAD is 11.84 (One Euro is for 11.84 MADs). The price of a put to sell on Euro at 10.46 MADs in 8
The spot EURMAD is 11.84 (One Euro is for 11.84 MADs). The price of a put to sell on Euro at 10.46 MADs in 8 months is 1.05 MADs. The risk-free rate on the MAD is 6.99% and the risk-free rate on the Euro is 5.36%. What should the price of a call on the EURMAD that has the same strike price and expiration as the put be?
A) 2.9 MAD
B) 3.12 MAD
C) 0.71 MAD
D) 2.49 MAD
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