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What is the minimum price

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Question - Assume the spot Swiss franc is $0.7036 and the six-month forward rate is $0.6968. What is the minimum price that a six-month American call option with a striking price of $0.6818 should sell for in a rational market? Assume the annualized six-month Eurodollar rate is 3.5 percent.

Reference no: EM133036824

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