Find annualized six-month eurodollar rate

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Assume the spot Swiss franc is $0.7044 and the six-month forward rate s $0.6972. What is the minimum price that a six-month American call option with a striking price of $0.6822 should sell for in a rational market? Assume the annualized six-month Eurodollar rate is 3.5 percent.

Reference no: EM133072025

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