Top Posters
Since Sunday
j
3
s
3
j
2
J
2
e
2
n
2
t
2
d
2
b
2
t
2
J
2
b
2
Home Q & A Board Other Fields Homework Help Business Insurance
New Topic  
elf_fu elf_fu
wrote...
Go to Answer
Posts: 705
Rep: 2 0
7 years ago
Suppose the spot exchange rate is $1.43 per British pound and the strike on a dollar denominated pound call is $1.30. Assume r = 0.045, rf = 0.06, σ = 0.15 and the option expires in 180 days. What is the call option price?
A) $0.133
B) $0.143
C) $0.153
D) $0.163
Textbook 
Derivatives Markets

Derivatives Markets


Edition: 3rd
Author:
Read 568 times
2 Replies
Replies
Answer verified by a subject expert
phuongha2892phuongha2892
wrote...
#1
Posts: 471
Rep: 49 0
7 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

wrote...
#2
3 years ago
i need explanation to the answer
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  863 People Browsing
 133 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 315
  
 297
  
 1706
Your Opinion
Previous poll results: Which country would you like to visit for its food?