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(Solved): 1) The current spot exchange rate is $1.60 = 1.00 and the three-month forward rate is $1.55 = ...



1) The current spot exchange rate is $1.60 = €1.00 and the three-month forward rate is $1.55 = €1.00. Consider a three-month American put option on €62,500. For this option to be considered at-the-money, the strike price must be a. $1.60 = €1.00. b. $1.55 = €1.00. c. $1.55 × (1 + i$)3/12 to the power of three by twelve = €1.00 × (1 + i€)3/12 to the power of three by twelve. d. none of the options



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