Suppose the exchange rate between the U.S.dollar and the British pound is US$1.50 = BP1.00.If the interest rate is 6% per year,what is the adjusted price of the British pound when valuing a foreign currency option with an expiration of one year?
A) $1.9050
B) $1.4151
C) $0.7067
D) $1.5900
Correct Answer:
Verified
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