3. Suppose your firm is planning to pay for goods imported from France. The payment will be made in two months and will require 225.5 million euro. The current exchange rate, available in the forward market, is $1.18 =1 euro. Explain the terms of the forward contract that your firm would need to negotiate to protect the firm against changes in the $/ exchange rate? 14. Suppose a Foreign Exchange call option is available on the Euro () with a strike price of $ 1.18. The exchange rate between the and the $ is currently $1.1896. The option expires in 4 months or 0.333 years. The risk-free interest rate is 1.0% and the standard deviation is computed as 0.05 or 5%. Using the Black-Scholes Option Pricing Model, determine the value for d. and de and determine the price (V) that you should pay for the call option per . Suppose the call option for calls for the delivery of 25,000 per contract. Determine the premium for 1 contract. What is the intrinsic value of this option per unit of currency? You must show all calculations on this problem. di = d2= Ve= Premium (1 contract for 25,000) = Intrinsic Value=