Use the same inputs as in the previous problem, except that K $1 00 In previous problem Suppose that the exchange rate is $0 92 C Let r$ 4 , and r C 3 , u 1 2, d 0 9, T 0 75, n 3, and K $0 85 a What is the price of a 9 month European put b What is the price of a 9 month American put ...

a We can calculate the price of the currency option in ...

Use the same inputs as in the previous problem, except that K = $1.00. In previous problem

Question:

Use the same inputs as in the previous problem, except that K = $1.00.
In previous problem
Suppose that the is $0.92/ = C. Let r$ = 4%, and r = C = 3%, u = 1.2, d = 0.9, T = 0.75, n = 3, and K = $0.85.
a. What is the price of a 9-month European put?
b. What is the price of a 9-month American put? Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...