Question: Let the current exchange rate denominated as $/ be 0.93 and the Canadian interest rate be 5%. The price of a 0.87-strike 148-days call is

Let the current exchange rate denominated as $/ be 0.93 and

Let the current exchange rate denominated as $/ be 0.93 and the Canadian interest rate be 5%. The price of a 0.87-strike 148-days call is $1.62. A similar put is worth $0.35. Find the euro-denominated interest rate. A) -2.05 (B) -2.04 (C) -2.01 (D) -2.02 (E) -2.03

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