Use one-period binomial model to find the value of a, Financial Management

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Use one-period binomial model to find the value of a

Use one-period binomial model to find the value of a one-year American Put option on £ with an exercise price of $1.58/£. The current spot rate is $1.53/£. One-year forward rate is $1.52/£. One-year U.S. interest rate is 3.5%. Annual exchange rate volatility on £ is 9%.

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Financial Management: Use one-period binomial model to find the value of a

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Financial Management: Use one-period binomial model to find the value of a

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