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Consider an opban to buy E12,500 tor kto,000 in the next period, the euro can strengthen against the pound by 25 percent pe. fich euro

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Consider an opban to buy E12,500 tor kto,000 in the next period, the euro can strengthen against the pound by 25 percent pe. fich euro wit buy 25 percent mere poundy ar whaken by 20 percent. Qg hatd dontiound, keep exchange iates out to at least 4 decmal places: USING fISK NEUTBA. VAIUARION, find the value of the call (in poundi)

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