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The spot USD/CLP exchange rate is at 850 or the 3-month forward is 860. The implied USD interest rate for this term is 1% per
The spot USD/CLP exchange rate is at 850 or the 3-month forward is 860. The implied USD interest rate for this term is 1% per annum. Which local interest of 3m in Chile. Assuming 25% volatility per year, how much is a European ATMF call worth?
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