Compute the strike european put


Problem:

You are the financial manager of a company and you are presented with this scenario: The exchange rate is 0.95 $/€, the euro-denominated continuously compounded interest rate is 4%, the dollar-denominated continuously compounded interest rate is 6%, and the price of a 1-year 0.93-strike European call on the euro is $0.0571.

Required:

Calculate the price of a 0.93-strike European put.

Note: Show supporting computations in good form.

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Accounting Basics: Compute the strike european put
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