Question II: Suppose that the exchange rate is $0.92/e. Let rs= 4%, and re= 3%, u = of binomial periods 1.2, d = 0.9, T = 0.75, numbe 3, and K = $1.00 Use Binomial Option pricing to answer the following two %3D questions. (a) What is the price of a 9-month European call? (b) What is the price of a 9-month American call?
Question II: Suppose that the exchange rate is $0.92/e. Let rs= 4%, and re= 3%, u = of binomial periods 1.2, d = 0.9, T = 0.75, numbe 3, and K = $1.00 Use Binomial Option pricing to answer the following two %3D questions. (a) What is the price of a 9-month European call? (b) What is the price of a 9-month American call?
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