Business, 16.04.2020 00:18 avashon09

The current spot exchange rate is $1.55 = €1.00; the three-month U. S. dollar interest rate is 2 percent. Consider a three-month American call option on €62,500 with a strike price of $1.50 = €1.00. What is the least that this option should sell for?

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The current spot exchange rate is $1.55 = €1.00; the three-month U. S. dollar interest rate is 2 per...