Use the same inputs as in the previous problem, except that K $1 00 In previous problem Suppose that the exchange rate is $0 92 C Let r$ 4 , and r C 3 , u 1 2, d 0 9, T 0 75, n 3, and K $0 85 a What is the price of a 9 month European put b What is the price of a 9 month American put

Question: Use the same inputs as in the previous problem, except that K = $1.00. In previous problem Suppose that the exchange rate is $0.92/ =

Use the same inputs as in the previous problem, except that K = $1.00.
In previous problem
Suppose that the is $0.92/ = C. Let r$ = 4%, and r = C = 3%, u = 1.2, d = 0.9, T = 0.75, n = 3, and K = $0.85.
a. What is the price of a 9-month European put?
b. What is the price of a 9-month American put?

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