Question: Use the binomial option pricing model to find the value of a call option on 10,000 with a strike price of 15,000. The current exchange
Use the binomial option pricing model to find the value of a call option on 10,000 with a strike price of 15,000. The current exchange rate is 1.50/1.00 and in the next period the exchange rate can increase to 2.40/ or decrease to 0.9375/. The current interest rates are i = 3% and are i = 4%.
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