The current exchange rate of dollars to euros is $18=e11. The risk free rate for dollars is ru = 3%. The risk free rate for euros is re = 4%.

5.1. The current exchange rate of dollars to euros is $18=e11.

The risk free rate for dollars is ru = 3%.

The risk free rate for euros is re = 4%.

The dollar denominated price of an option to purchase e22 for $32 in six months is

$5:09.

(a) Determine the euro denominated price of a put option to sell $22 in six months using

the given strike. (Hint: the strike comes from the statement e22 for $32.)

(b) Determine the euro denominated price of a put option to sell $33 in six months using

the given strike.

(c) Determine the euro denominated price of a call option to buy $33 in six months using

the given strike.