The current spot exchange rate is 155 euro100the, Ask an Expert

Finance

The current spot exchange rate is $1.55 = €1.00

The three-month forward rate is $1.60 = €1.00

The three-month U.S interest rate is 4.835%

The three-month European interest rate is 4.983%

You are looking at a three-month American call option on €62,500 with a strike price of $1.50 = €1.00 costing $.0369/€.

How much of a profit will immediate exercise generate?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92821552

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