Can an option on the yen-euro exchange rate be created from


1. What is the put-call parity relationship for European currency options?

2. Can an option on the yen-euro exchange rate be created from two options, one on the dollar-euro exchange rate, and the other on the dollar-yen exchange rate? Explain your answer.

3. Prove the results in equations (16.1), (16.2), and (16.3) using the portfolios indicated.

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Financial Management: Can an option on the yen-euro exchange rate be created from
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