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Use the binomial option pricing model to find the value of a call option on 10,000 with a strike price of 17,000. The current exchange

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Use the binomial option pricing model to find the value of a call option on 10,000 with a strike price of 17,000. The current exchange rate is 1.70/1.00 and in the next period the exchange rate can increase to 2.00/ or decrease to 0.9380/. The current interest rates are i= 3.5% and are if =6%. 2,8753,0211,9702,756 Find the hedge ratio for a call option on 10,000 with a strike price of 17,000. The current exchange rate is 1.70/1.00 and in the next period the exchange rate can increase to 2.40/ or decrease to 0.9375/. The current interest rates are i=3% and are if =4%. 8/13 17/24 56/117 47/105

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