The single unobservable variable in currency option pricing is the volatility, since volatility inputs are expected standard
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The single unobservable variable in currency option pricing is the volatility, since volatility inputs are expected standard deviation of the daily spot rate for the coming period of the option's maturity. Using the following Web site, pick one currency volatility and research how its value has changed in recent periods over historical periods. See Philadelphia Stock Exchange at http://www.nasdaqtrader.com/homepage.aspx.
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Related Book For
International Business
ISBN: 978-0470530658
8th edition
Authors: Michael Czinkota, Iikka A. Ronkainen, Michael H. Moffett
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