Determine the Value of a European Foreign Currency Put If

question 20

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.(The interest rates are continuously compounded. )

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

---

Definitions:

Job

A specific role or position within an organization, involving a set of tasks and responsibilities.

SLII

A model of leadership that proposes that the most effective leaders are those who are flexible, adapting their style according to the development level of their followers and the specific situation.

Leadership Style

Pertains to the manner in which a leader provides direction, implements plans, and motivates people, ranging from autocratic to democratic to laissez-faire styles.

Business Finance

The management of funds and other financial resources in a way that supports the organization's goals and operations.