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Use the following information for questions 18.29 and 18.30: You are given: (1) The spot exchange rate is 1.5$/. (ii) The continuously compounded risk-free rate

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Use the following information for questions 18.29 and 18.30: You are given: (1) The spot exchange rate is 1.5$/. (ii) The continuously compounded risk-free rate in dollars is 6%. (ii) The continuously compounded risk-free rate in pounds sterling is 3%. (iv) A 6-month dollar-denominated European put option on pounds with a strike of 1.55/ costs $0.03. 18.29. Determine the premium in pounds of a 6-month pound-denominated European call option on dollars with a strike of (1/1.5)/$. IFM Study Manual-1" edition Copyright 2018 ASM Exercises contine on the next page

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