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The current exchange rate of dollars to euros is $18/€11.The risk free rate for dollars is r = 3%. The risk free rate for euros is re = 4%. The dollar denominated price of an option to purchase €22 for $32 in six months is $5.09.

Determine the euro denominated price of a put option to sell $22 in six months using the given strike. (Hint: the strike comes from the statement €22 for $32.)

User Dan Jay
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1 Answer

7 votes

Answer:

wow simple

Step-by-step explanation:

so simple

just a little tricky

User Jim DeLaHunt
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