Suppose the exchange rate is $1.69/£, the Britishpound-denominated continuously compounded interest

Suppose the exchange rate is $1.69/£, the Britishpound-denominated continuously compounded interest rate is 3%, theU.S. dollar-denominated continuously compounded interest rate is8%, and the price of a 1-year $1.60-strike European call on theBritish pound is $0.2582. What is the value of a 1-year$1.60-strike European put on the British pound? a. $0.1682 b. $0.1043 c. $0.1485 d. $0.2508 e. $0.0951 The price of a 1-year U.S. dollar-denominated call option on theSwiss franc with a strike price of $1.30 is $0.11715. The price ofan otherwise equivalent put option is $0.23417. The annualcontinuously compounded U.S. interest rate is 8%. What is the1-year U.S. dollar-Swiss franc forward price? a. $1.0830/Fr b. $1.1609/Fr c. $1.1830/Fr d. $1.1732/Fr e. $1.1920/Fr . . .

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