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Calculate the price of a us-dollar-denominated euro

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Suppose that the spot exchange rate is X0 = $1.1 /euro. The exchange rate has a volatility of 0.1. Assume that the US-dollar-denominated interest rate is 0.05 and the Eurodenominated interest rate is 0.04. Calculate the price of a US-dollar-denominated Euro put maturing in 6 months with a strike of $1.1.

Reference no: EM132407058

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