The 6-Month Call and Put Premiums Are $0

question 13

Multiple Choice

The 6-month call and put premiums are $0.114 and $0.098,respectively,with a $0.94 strike.Dollar and euro interest rates are 7.0% and 6.0%,respectively.What spot exchange rate is implied by this data?

• A) $0.98 dollars per euro
• B) $1.02 dollars per euro
• C) $1.05 dollars per euro
• D) $1.09 dollars per euro

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