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The spot USDMAD is 9.39 (One USD is for 9.39 MADs). In 10 months, it will either rise to 10.36 or fall to 8.34.
The spot USDMAD is 9.39 (One USD is for 9.39 MADs). In 10 months, it will either rise to 10.36 or fall to 8.34. The risk-free rate on the MAD is 6.3% and the risk-free rate on the Euro is 6.76%. i) A call to buy one dollar at 9.35 MADs expires in 10 months. What should its price be? (7.5 pts) Answer= i) A put to sell one dollar at 10.66 MADS expires in 10 months. What should its price be? (7.5 pts) Answer= ========//
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i The price of the call option should be equal to the pre...
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Engineering Mechanics Dynamics
Authors: James L. Meriam, L. G. Kraige, J. N. Bolton
8th Edition
1118885848, 978-1118885840
