For a call option of CN¥100,000 with the $0.16 exercise price and $0.0005 premium, When the spot exchange rate is $0.1602, the call option holder should __ the call? a. exercise b. not exercise

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Q: For a put option of CN¥ with $0.14 exercise price and $0.0005 premium, the breakeven spot price for…

A: Given: Exercise price =$0.14 Premium = $0.0005

Q: option

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Q: d. Forward contracts are not traded in any exchanges across the world.

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Q: optic

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Q: Let S = $100, K = $95, r = 8%, T = 1, and o = 0. Let u = 1.3, d = 0.8, and n = 2. Under the Binomial…

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