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How would the call option premium change

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Reference no: EM131676861

Question: An Excel workbook entitled FX Option Pricing is downloadable from this book's Web site. The workbook has five spreadsheets constructed for pricing currency options for the following five currency pairs (dollar/euro shown here): U.S. dollar/euro, U.S. dollar/Japanese yen, euro/Japanese yen, U.S. dollar/British pound, and euro/British pound.

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Euro/British Pound. How would the call option premium change on the right to buy pounds with euros if the euro interest rate changed to 4.000% from the initial values listed in the FX Option Pricing workbook?

Reference no: EM131676861

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