The table, indicates that a 1-year call option on euros at a strike rate of $1.2499/ will cost the buyer $0.0555/, or 4.38%. But that assumed a volatility of 10.500% when the spot rate was $1.2666/. What would the same call option cost if the volatility was reduced to 10.500% when the spot rate fell to $1.2484/?

The decimal equivalent for 365.00 days is ??? (Round to three decimal places.)

The new forward rate is $1.23931.2393/. ??? (Round to four decimal places.)

The same call option cost if the volatility was reduced to 10.500% when the spot rate fell to $1.2484/ would be $0.04640.0464/. ??? (Round to four decimal places.)

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