If put-call parity holdsnbsp what is the current price of a


1. Suppose that the premium on March 20 on a June 20 yen put option is 0.0514 cents per yen at a strike price of $0.0077. The forward rate for June 20 is ¥1 = $0.00787 and the quarterly U.S. interest rate is 2%. If put-call parity holds, what is the current price of a June 20 PHLX yen call option with an exercise price of $0.0077?

2. On June 25, the call premium on a December 25 PHLX contract is 6.65 cents per pound at a strike price of $1.81. The 180-day (annualized) interest rate is 7.5% in London and 4.75% in New York. If the current spot rate is £1 = $1.8470 and put-call parity holds, what is the put premium on a December 25 PHLX pound contract with an exercise price of $1.81?

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