You work at the currency desk at Barings Bank in London. As the middleman in a deal between the U.K. and Danish governments, you have paid £1,000,000 to the U.K. government and have been promised DKK8,438,000 from the Danish government in three months. You wouldn't mind leaving this long krone position open. However, next month's referendum in Denmark may further delay Denmark's adoption of the euro as its currency. If this happens, you expect the krone to drop on world markets. As a hedge, you are considering purchasing a call option on pounds sterling with an exercise price of DKK8.4500/£ that sells for DKK0.1464/£. Fill in the call option values at expiration in the following table. Refer to the long call in Exhibit 6.3 for reference.

DKK/£ spot exchange rate at expiration 8.00 8.40 8.42 8.44 8.46 8.48 Call value