answer shoild he between .5 ans .10 accoridng to professor

ow all your work, write your answers in your handwriting and submit the homework ir class or to instructor's office. The instructor does not accept typed answers, a 1. Consider a six-month (T = 0.5) European call option with an exercise price of $1.08/1.00. The current spot exchange rate is $1.12/1.00; Annualized US, interest rate is 2% and annualized euro-zone interest rate is 5%. The volatility (C) of the underlying asset (euro) is 15 percent. Compute the price of this call option using the formulae below. Show all your work (i.e., use four decimal points) (40 points! C=[F.N(d,)-X.N(d,)]+ In(F_/X)+0.5.6.1 OVT d =d, -o d, - F=Soe