Question: Use the binomial model with risk - neutral probability to find the doliar value today of a 1 - period at - the - money

Use the binomial model with risk-neutral probability to find the doliar value today of a 1-period at-the-money call option on 300,000. The spot exchange rate is 100= $1.00. In the next period, the yen can increase in dollar value by 15 percent or decrease by 15 percent. The risk-free rate in dollars is ig =5%; The risk-free rate in yen is iy =1%. a.(2.5 pts.) Find the price of this option if it were a put instead of a call.

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