Find the Value of a Call Option Written on €100

question 28

Multiple Choice

Find the value of a call option written on €100 with a strike price of $1.00 = €1.00.In one period there are two possibilities: the exchange rate will move up by 15% or down by 15% .The U.S.risk-free rate is 5% over the period.The risk-neutral probability of dollar depreciation is ²/₃ and the risk-neutral probability of the dollar strengthening is ¹/₃.

• A)$9.5238
• B)$0.0952
• C)$0
• D)$3.1746

Recognize the impact of personal values on ethical decision-making in professional settings.

Analyze ethical dilemmas and the steps to resolve them, including recognizing dilemmas, stating them clearly, and identifying relevant facts and values.

Assess the role of ethics in the use of authority and the relationship between personal and professional interests in criminal justice.

Examine specific ethical issues faced in the criminal justice system, including use of force, the criminalization of immigration, and policies like "Stop and Frisk."

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Definitions:

Gender-Assuming Term

Language or terms that imply or assign a gender to a person or a group, sometimes leading to stereotypes or biases.

Familiar Objects

Items or things that are well known or recognized by someone due to frequent exposure or inherent knowledge.

Linguistic Relativity Hypothesis

A theory suggesting that the structure of a language affects its speakers' worldview or cognition.

Benjamin Lee Whorf

An American linguist and fire prevention engineer known for his ideas on linguistic relativity, the hypothesis that the structure of a language affects its speakers' world view or cognition.