Final answer:
The price of the $0.93 strike 6-month put option is $0.056. Therefore, the correct option is C.
Step-by-step explanation:
In order to find the price of the $0.93 strike 6-month put option, we can use the put-call parity formula:
Put Price = Call Price + Strike Price - Spot Price + (Risk-free Rate - Foreign Interest Rate) x (Time to Expiration)
Given that the price of the $0.93 strike 6-month call option is $0.08, the strike price is $0.93, the spot exchange rate is 0.95, and the interest rate differential is 7.0% - 6.0% = 1.0%, we can substitute these values into the formula:
Put Price = $0.08 + $0.93 - 0.95 + 0.01 x (6/12) = $0.056
Therefore, the price of the $0.93 strike 6-month put option is $0.056, so the correct answer is C. $0.056.