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The spotrate of the New Zealand dollar is $.70 A call option on New Zealand dollarswith a 1-year expiration date has an exercise price of
The spotrate of the New Zealand dollar is $.70 A call option on New Zealand dollarswith a 1-year expiration date has an exercise price of $.71 and a premium of $.02.A put option on New Zealand dollars at the money with a 1 year expiration datehas a premium of $.03. You expect that the New Zealand dollars spot rate willrise over time and will be $.75 in 1 year
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