Suppose that the exchange rate is $0.92/=C. Let r$ = 4%, and r=C= 3%, u = 1.2,

Question:

Suppose that the is $0.92/=C. Let r$ = 4%, and r=C= 3%, u = 1.2, d = 0.9, T = 0.75, n = 3, and K = $0.85.
a. What is the price of a 9-month European call?
b. What is the price of a 9-month American call? Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...