Please answer the following questions and all its parts(max 4 parts according to chegg). Failure to do so will result in negative rating. Try answering on a piece of paper if possible and scan it please and i will give good rating. Thanks!

Finance H/W 2014/2 c) Discuss the relevance of the different variables that make up the Black-Scholes Model of option valuation =cii) compare and contrast an OTC currency option to a curency Futuves contract -en) The treasurer of company is expected to pay tisooo, ooh in 90 days. The treasurer expect's short-term interest rates to rise during the neat 90 days in order to hedge against this risks, the treasurer decides to use a FRA that expires in 90 days and is based on to day and LIBOR. The FRA rates quoted are 5-4.95 0. At expiration, LIBOR 15 5:44%. Assuming the notional principal on the contract is $15,000.00 calosing the appropriate berminology, indicate which bype of FRH is to be used and whether the treasurer should take a long or short position to hedge interest (b) calculate the gainor or loss to the company consequence of using the FRA risk as a