1. A put option that expires in six months with an exercise price of $40 sells for $4.20. The stock is currently priced at $37, and the risk-free rate is 3.6 percent per year, compounded continuously. What is the price of a call option with the same exercise price?
Call price $
2. Based on your readings can you explain why USD has appreciated since November 2016? Also consumers, companies and institutions in US and countries like Canada, China, Europe and Mexico are impacted by the appreciation/depreciation of their currency. In your view, who is gaining and who is losing from the appreciation of US? Since we visit Spain, please think who is winning or losing in Spain ( use below %).
Russia/Ruble: 7.7%
Canada/Dollar: 0.4%
China/Yuan: -1.5%
Europe/Euro: -5.0%
Mexico/Peso: -13.40%