Answered You can hire a professional tutor to get the answer.
Suppose that the spot price of the Canadian dollar is US 0.75 and that the Canadian dollar/US dollar exchange rate has a volatility of 4% per annum.
Suppose that the spot price of the Canadian dollar is US 0.75 and that the Canadian dollar/US dollar exchange rate has a volatility of 4% per annum. The risk-free rates of interest in Canada and the United States are continuously compounded 9% and 7% per annum, respectively. Calculate the value of a European call option to buy one Canadian dollar for US $0.75 in 9 months. Use put-call parity to calculate the price of a European put option to sell one Canadian dollar for US $0.75 in 9 months. What is the price of a call option to buy US $0.75 with one Canadian dollar in 9 months?
