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SOLVED:Consider a down-and-out call option on a foreign currency. The initial exchange rate is 0.90, the time to maturity is 2 years, the strike price is 1.00, the barrier is 0.80, the domestic risk-free interest rate is 5 %, the foreign risk-free interest rate is 6 %, and the
SOLVED:Consider a down-and-out call option on a foreign currency. The initial exchange rate is 0.90, the time to maturity is 2 years, the strike price is 1.00, the barrier is 0.80, the domestic risk-free interest rate is 5 %, the foreign risk-free interest rate is 6 %, and the
numerade.com
Dec 13, 2023