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You are to pay 125,000 in 3 months and todays spot price is $1.17, but the 3 month forward rate is $1.19. If a (put
You are to pay 125,000 in 3 months and todays spot price is $1.17, but the 3 month forward rate is $1.19. If a (put or call?) option (125,000) cost $1,500 what is the most you will pay for buying your euros (net of the option cost) with dollars? Give answer is total dollars and in dollars per euro.
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