Question
. The spot exchange rate for the Mexican Peso is MXN 17.9921/USD. A Mexican Peso call option with 5 months until maturity and a strike
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The spot exchange rate for the Mexican Peso is MXN 17.9921/USD. A Mexican Peso call option with 5 months until maturity and a strike price of $0.0535/MXN is selling a premium of $0.002970/MXN. What is the time value of the option?
| A. | $0.002080 | |
| B. | $0.000890 | |
| C. | $0.000350 | |
| D. | $0.019103 |
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Finance Online Case Library
Authors: Eugene F. Brigham
1st Edition
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