Foreign FM Il homework 01 Problem 8 of 10 You are given: () The spot exchange rate is 1.5$/E. (ii) The continuously compounded risk-free rate in dollars is 6% (ili The continuously compounded risk-free rate in pounds sterling is 3% (iv) A 6-month dollar-denominated European put option on pounds with a strike of 155/ costs $0.03. Determine the premium in pounds of a 6-month pound-denominated European call option on dollars with a strike of (1/1.5)/$ (A) Less than 0.01 (B) At least 0.01, but less than 0.02 (C) Atleast 0.02, but less than 0.03 (D) At least 0.03, but less than 0.04 (E) Atleast 0.04. Mark OA B OC D 01:59:00 Normal Inverse Back Next Submit