Multiple Choice
Find the lower bound of a European foreign currency put if the spot rate is $3.50,the domestic interest rate is 8 percent,the foreign interest rate is 7 percent,the option expires in six months,and the exercise price is $3.75.
A) zero
B) $0.250
C) $0.366
D) $0.108
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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