Suppose the exchange rate is $1.16/A$. Let r $ = 7%, r A$ = 2%,...
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| Suppose the exchange rate is $1.16/A$. Let r $ = 7%, r A$ = 2%, u = 1.31, d = 0.80, and T = 1. Using a 2-step binomial tree, calculate the value of a $1.20-strike American put option on the Australian dollar. Option C is correct, but how? Can you provide solution for Excel? formulas and steps or actual excel work sheet please? | |||||||||||
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c. 
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