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What should the continuous dividend yield be replaced by when options on an exchange rate are valued using the formula for an option of a
What should the continuous dividend yield be replaced by when options on an exchange rate are valued using the formula for an option of a stock paying a continuous dividend yield?
Select one:
a.
The domestic risk-free rate
b.
The foreign risk-free rate
c.
The foreign risk-free rate minus the domestic risk-free rate
d.
None of the above
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