HII

Euro/Japanese Yen. A French firm is expecting to receive 10.4 million in 60 days as a result of an export sale to a Japanese semiconductor firm. What will it cost, in total, to purchase an option to with a strike price of 0.007353/? The spot rate is 0.007100/ (See table for initial values.) The cost, in total, to purchase an option with a strike price of 0.007353/JPY (knowing that its spot rate is 0.007100/JPY) is 1288.72 /. (Round to the nearest cent.) A Japanese firm wishing to buy or sell euros (the foreign currency) A European firm wishing to buy or sell yen (the foreign currency) Variable Value Variable Value Domestic interest rate (% p.a.) rd 2.1870 % rd 0.0875 % rf 0.0875 % rf 2.1870 % Foreign interest rate (% p.a.) Volatility (% p.a.) S 10.000 % s 10.000 % d1 -0.45027 d1 -0.75643 d2 -0.49082 d2 -0.79697 d1 -0.45027 d1 -0.75643 d2 -0.49082 d2 -0.79697 0.32626 IN(d1) 0.22470 IN(d1) IN(d2) 0.31178 N(d2) 0.21273