What circumstance should the put be early exercised

Reference no: EM131964428

Question: The current exchange rate is 1.6 USD/Euro, u = 1.05, d = 0.95, delta = 1. Risk free interest rates for USD and Euro are r = 5% and q = 4%, respectively. Price a 2-year at-the-money American put option. Under what circumstance should the put be early exercised? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131964428

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