Question: Use the binomial option pricing model to price a put option with an exercise price of $1.52/. There is one period remaining until expiration of
Use the binomial option pricing model to price a put option with an exercise price of $1.52/. There is one period remaining until expiration of the option. Interest rates are 4% in the US and 7% in the UK. The current spot exchange rate is $1.60/ and it could either go up to $1.80/ or down to $1.42/ at expiration.
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