The current exchange rate is 16 usdeuro u 105 d 095 delta, Ask an Expert

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The current exchange rate is 1.6 USD/Euro, u = 1.05, d = 0.95, delta = 1. Risk free interest rates for USD and Euro are r = 5% and q = 4%, respectively. Price a 2-year at-the-money American put option. Under what circumstance should the put be early exercised?

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Category:- Financial Management
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