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Suppose the exchange rate is $1.54/£, the British pound-denominated continuously compounded interest rate is 2%, the...

Suppose the exchange rate is $1.54/£, the British pound-denominated continuously compounded interest rate is 2%, the U.S. dollar-denominated continuously compounded interest rate is 5%, and the price of a 6-month $1.60-strike European call on the British pound is $0.1614. What is the value of a 6-month $1.60-strike European put on the British pound? Answers: a. $0.2024 b. $0.1972(Correct answer) c. $0.1797 d. $0.2435 e. $0.2214. Please show all your work, thank you.

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