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Question The current exchange rate of dollars

Question : Question The current exchange rate of dollars : 5635

Question

The current exchange rate of dollars to euros is $1.8/1.1. The risk free rate for dollars is r_u = 3%. The risk free rate for euros is r_u = 4%. The dollar denominated price of an option to purchase 22 for $32 in six months is $4.61. Determine the dollar denominated price of an option to sell $22 using the same strike as above. Determine the euro denominated price of an option to sell $33 using the same strike as above.

 

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Finance 1 Year Ago 129 Views
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