Question II: Suppose that the exchange rate is $0.92/e. Let rs= 4%, and re= 3%, u = of binomial periods 1.2, d = 0.9, T = 0.75, numbe 3, and K = $1.00 Use Binomial Option pricing to answer the following two %3D questions. (a) What is the price of a 9-month European call? (b) What is the price of a 9-month American call?

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A: To Find: Value of Call Option(using Garman Kohlgen )

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A: e) 1) The computation of forward rate: Hence, the forward rate is $1.268739.

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Q: Mr. Sami approached his FOREX trader and was informed that the spot rate is EUR 2.1565/OMR. The…

A: Option a is correct.

Q: Suppose that the exchange rate is €1.25 = £1.00.Options (calls and puts) are available on the…

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