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Suppose the exchange rate is $1.21/C$. Let r $ = 7%, r C$ = 6%, u...

Suppose the exchange rate is $1.21/C$. Let r $ = 7%, r C$ = 6%, u = 1.20, d = 0.84, and T = 1. Using a 2-step binomial tree, calculate the value of a $1.30-strike American put option on the Canadian dollar?

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ANSWER IN THE IMAGE ((YELLOW HIGHLIGHTED). FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE. THUMBS UP PLEASE.

jeff jeffy answered 1 year ago
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