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You are given: (1) The spot exchange rate is 1.5$/. (ii) The continuously compounded risk-free rate in dollars is 6%. (iii) The continuously compounded risk-free

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You are given: (1) The spot exchange rate is 1.5$/. (ii) The continuously compounded risk-free rate in dollars is 6%. (iii) The continuously compounded risk-free rate in pounds sterling is 3%. (iv) A 6-month dollar-denominated European put option on pounds with a strike of 1.5$/ costs $0.03. 18.30. Determine the premium in pounds of a 6-month pound-denominated European put option on dollars with a strike of (1/1.5)/$

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