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please answer question U.S. Dollar/Euro. The table, indicates that a 1-year call option on euros at a strike rate of 51 24987 will cost the

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U.S. Dollar/Euro. The table, indicates that a 1-year call option on euros at a strike rate of 51 24987 will cost the buyer 50 05567, or 4.38% But that a assumed a volatility of 10 500% when the spot rate was 51 2665/ What would the same call option cost if the volatility was reduced to 10.500% when the spot rate fell to $1 2479/07 The same call option cost if the volatility was reduced to 10 500% when the spot rato tell to 51 24791e would be e (Round to four decimal places) Data Table AUS-based firm wishing to buy or sell euros (the foreign currency) A European firm wishing to buy or sell dollars (the foreign currency) Variable Variable Value $ 1.2665 SO SO Value 0.7896 0.7954 0.8001 FO $ 12572 FO $ 1.2498 rd 1.454 rd Spot rate (domestic foreign) Forward rate (domestic/foreign) Strike rate domestic/foreign) Domestic interest rate (% p.a.) Foreign interest rate (%p.a.) Time (years, 365 days) Days equivalent Volatility (% pa) 2.189 1.454 % 11 rf 2.189 T 1 000 T 1.000 365.00 365 00 10.500 5 % S s 10.500 d1 -0.0036 d1 0.1087 0.0037 d2 d2 -0.1086 N(41) 04986 N(01) 0.5433 Print Done - Data Table C 1 000 1.000 FECT Time (years, 365 days) Days equivalent Volatility (pa) 365.00 365.00 10 500 10.500 $ % d1 0.1087 d1 -0.0036 - 1086 d2 0.0037 d2 0.5433 0.4986 N[d1) N[d2) N(1) Nd2) 0.5015 0.4568 c $ 0.0555 Call option premium (per unit fc) Put option premium (per unit fc) (European pricing) 0.0304 0.0350 $ 0.0482 4 38 % c % Call option premium (%) Put option premium (%) 3.85 443 381 % Print Done

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