Use the European Option Pricing Formula to Find the Value

question 14

Multiple Choice

Use the European option pricing formula to find the value of a six-month call option on Japanese yen.The strike price is $1 = ¥100.The volatility is 25 percent per annum; r_$ = 5.5% and r_¥ = 6%.

• A)0.005395
• B)0.005982
• C)$0.006137/¥
• D)none of the options

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Sherman Act

A foundational antitrust law in the United States that prohibits monopolistic practices and cartels, aiming to preserve fair competition.

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Sherman Act

The Sherman Act is a landmark federal statute in the field of U.S. antitrust law passed by Congress in 1890, which prohibits monopolistic business practices and promotes competition.

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