How can the below example be handled via a call option approach?
Question How can the below example be handled via a call option approach? style=”background-color:rgb(230,230,230);color:rgb(17,17,17);”>Venezuela’s current exchange rate is 9.8750 Bolivar(VEF) for 1USD, so for 1 million dollars we get 9,875,000 VEF. It has been this rate for the past 90 days, making it 0% change of volatility. Lets imagine that the spot rate decreases to .90 instead of a dollar, […]