The current exchange rate of a currency is 052 the annual, Ask an Expert

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The current exchange rate of a currency is $0.52, the annual domestic risk-free rate is 4%, and the annual foreign risk-free rate is 8%. If the price of an eight-month European put option on a currency with a strike price of $0.50 is $0.012, what is the implied volatility of the currency exchange rate?

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Category:- Financial Management
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