Determine the Value of a European Foreign Currency Put If

question 21

Multiple Choice

Determine the value of a European foreign currency put if the call is at $0.05,the spot rate is $0.5702,the exercise price is $0.59,the domestic interest rate is 5.75 percent,the foreign interest rate is 4.95 percent and the options expire in 45 days.

• A)$0.069
• B)$0.031
• C)$0.050
• D)$0.517
• E)none of the above

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Definitions:

Basal Ganglia

A group of structures in the brain involved in controlling movement, emotion, cognition, and reward.

Implicit Memories

Memories that are not consciously recalled but affect thoughts and behaviors, such as skills and tasks learned through repetition.

Cerebellum

A part of the brain crucial for motor control, balance, and coordination.

Conditioned Fear Response

A learned response to a previously neutral stimulus that becomes associated with an unconditioned stimulus that elicits fear.