The current exchange rate of dollars to euros is $1.8/€1.1
The risk free rate for dollars is ru 3%.
The risk free rate for euros is re 4%
The dollar denominated price of an option to purchase €22 for $32 in six months is $4.61.
(a) Determine the dollar denominated price of an option to sell $22 using the same strike as above. (Hint: the strike comes from the statement 22 for $32.)
(b) Determine the euro denominated price of an option to sell $33 using the same strike as above.