A nine-month dollar-denominated call option on euros with a strike price of $1.30 is values at $0.06. A nine-month dollar-dominated put option on euros with the same strike price is valued at 0.18. The current exchange rate is $1.2/euro and the continuously compounded risk-free rate on dollar is 7%. What is the continuously compounded risk-free rate on euros?
Formulas would be greatly appreciated
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