Find the hedge ratio for a call option-current exchange rate

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Reference no: EM131025830

Find the hedge ratio for a call option on €10,000 with a strike of €17,000. The current exchange rate is €1.70/€1.00 and in the next period the exchange rate can increase to €2.40/€ or decrease to €.9375/€. The current interest rate are i€=3% and i€=4%.

Reference no: EM131025830

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