Use the binomial option pricing model to find the value of


Use the binomial option pricing model to find the value of a call option on £10,000 with a strike price of €17,000. The current exchange rate is €1.70/£1.00 and in the next period the exchange rate can increase to €2.00/£ or decrease to €0.9380/£1.00. the current exchange rates are €=3.5% and are £=6%.

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Financial Management: Use the binomial option pricing model to find the value of
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