Pricing Currency Options on the Euro 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 1.4730 Value 0.6789 SO SO FO 1.4654 FO 0.6824 0.6667 1.5000 2.072 4.160 rd % rd Spot rate (domestic/foreign) Forward rate (domestic foreign) Strike rato (domestic/foreign) Domestic interest rate (%p.a.) Foreign interest rato (% p.a.) Time (years, 365 days) Days equivalent Volatility (%p.a.) rf 2.072 % rf 4.160 T 0.247 0.247 90.00 90.00 s 11.400 11.400 % 5 0.44 d1 -0.38 d1 d2 -0.44 d2 0.38 0.35 0.67 N(1) N(42) N(D1) N(D2) 0.33 0.65 Euro British Pound. How would he cut option premium change on the right to buy pounds with euros if the aure Interest rate changed to 4 215 from the inhal values isted in the table The can option on Betah pounds, the ero interest rate changed to 4.21%, would be eit (Round to four decimal place) Therefore , the cut option premium on Brian pound 4219 would decrease by Cik (Round to four decimal places and select the best answer from the drop-down menu)