Question: Use the binomial option pricing procedure... Suppose that the exchange rate is 1.30USD/ EUR. Let the interest rate be 3 percent in USD and 5%

Use the binomial option pricing procedure... Suppose that the exchange rate is 1.30USD/ EUR. Let the interest rate be 3 percent in USD and 5% in EUR. Find the price of a European Call with an expiration period in 15 months and a strike price of 1.25 USD. Assume this is a one period binomial model, and the volatility is 5 percent.

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