The current spot exchange rate is 125 euro100 and the, Ask an Expert

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The current spot exchange rate is $1.25 = €1.00 and the three-month forward rate is $1.30 = €1.00. Consider a three-month American call option on €62,500 with a strike price of $1.20 = €1.00. If we decided to exercise this option immediately, what revenue would we receive?

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Financial Management, Finance

Category:- Financial Management
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