For a japanese bank the option to sell 2 billion yen for 16


For a Japanese bank, the option to sell 2 billion yen for 16 million USD on a date 18 months from today is worth 170 million yen. Volatility is 25%, and the continuously compounding interest rates are 3% in USD, and 1% in yen. What are the 2 billion yen worth today in US dollars?

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Financial Management: For a japanese bank the option to sell 2 billion yen for 16
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