Question: For all problems where a risk free rate or a dividend yield is given, assume that the interest rate and the dividend yield are annual

For all problems where a risk free rate or a dividend yield is given, assume that the interest rate and the dividend yield are annual and continuously compounded rates.

The spot price of the Canadian dollar is US $ 0.91. The risk free rates of interest in Canada and the United States are 3% and 1% per annum, respectively. The price of a one year European put option to sell one Canadian dollar for US $ 0.90 is US $ 0.03. Use put-call parity to compute the price of a one year European call option to buy one Canadian dollar for US $ 0.90.

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