Question: Use the binomial option pricing model to find the value of a call option on 10,000with a strike price of 17,000. The current exchange rate

Use the binomial option pricing model to find the value of a call option on 10,000with a strike price of 17,000. The current exchange rate is 1.70/1 and in the next period the exchange rate can increase to 2.00/ or decrease to 0.9380/. The current interest rates are i = 3.5% and are i = 6%

a) 3,021

b) 1,970

c) 2,875

d) 2,756

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