Question: Use the binomial tree model to price a European put option on a Singapore dollar. The put option expires in 6 months, and its strike

Use the binomial tree model to price a European put option on a Singapore dollar. The put option expires in 6 months, and its strike price is 5.6 Hong Kong dollars. Suppose the current exchange rate of Singapore dollar is 5.7 Hong Kong dollars. The exchange rate could either rise to 5.9 in the up state, or drop to 5.5 in the down state. The annual risk-free rate in Hong Kong is 2%, and the annual risk-free rate in Singapore is 1%. Find the current price of the put option in Hong Kong dollar.

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5. It is the needs of the individual that are important.

6. It is what the person has previously done for the group that is the deciding factor.

3. It is the commitment you show that is the deciding factor.