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2. You are in the Republic of Ireland. Price a one year European put option on GBP1.00 with strike EUR 1.06. The EUR/GBP exchange rate's

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2. You are in the Republic of Ireland. Price a one year European put option on GBP1.00 with strike EUR 1.06. The EUR/GBP exchange rate's volatility is 25%. Interest rates in the Eurozone are 0.1%, while in Britain, they are 0.7% (both with continuous compounding). The current exchange rate is GBP1 = EUR1.11. Use the Black-Scholes-Merton formula to do this pricing

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