Question: That's all I was given in this question; dollar is the domestic currency and yen is the foreign currency You are given: (1) The current

That's all I was given in this question; dollar is the domestic currency and yen is the foreign currency

You are given: (1) The current exchange rate is 0.011$/4. (11) A four-year dollar-denominated European put option on yen with a strike price of $0.008 sells for $0.0005. The continuously compounded risk-free interest rate on dollars is 3%. (ii) (iv) The continuously compounded risk-free interest rate on yen is 1.5%. Calculate the price of a four-year yen-denominated European put option on dollars with a strike price of 125. You are given: (1) The current exchange rate is 0.011$/4. (11) A four-year dollar-denominated European put option on yen with a strike price of $0.008 sells for $0.0005. The continuously compounded risk-free interest rate on dollars is 3%. (ii) (iv) The continuously compounded risk-free interest rate on yen is 1.5%. Calculate the price of a four-year yen-denominated European put option on dollars with a strike price of 125

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