# Question: Suppose that the exchange rate is 0 92 C Let r

Suppose that the exchange rate 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?

= 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?

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