Multiple Choice
Draw the tree for a put option on $20,000 with a strike price of £10,000.The current exchange rate is £1.00 = $2.00 and in one period the dollar value of the pound will either double or be cut in half.The current interest rates are i$ = 3% and are i£ = 2%.
A)
B)
C) both of the options
D) none of the options
Correct Answer:

Verified
Correct Answer:
Verified
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