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U.S. Dollar/Euro. The table, , indicates that a 1-year call option on euros at a strike rate of $1.2502/ will cost the buyer $0.0469/, or
U.S. Dollar/Euro. The table, , indicates that a 1-year call option on euros at a strike rate of $1.2502/ will cost the buyer $0.0469/, or 3.75%. But that assumed a volatility of 10.500% when the spot rate was $1.2498/. What would the same call option cost if the volatility was reduced to 10.500% when the spot rate fell to $1.2484/? The same call option cost if the volatility was reduced to 10.500% when the spot rate fell to $1.2484/ would be $ i . (Round to four decimal places.) A U.S.-based firm wishing to buy A European firm wishing to buy or sell euros (the foreian currencv) or sell dollars (the foreian currencv) U.S. Dollar/Euro. The table, , indicates that a 1-year call option on euros at a strike rate of $1.2502/ will cost the buyer $0.0469/, or 3.75%. But that assumed a volatility of 10.500% when the spot rate was $1.2498/. What would the same call option cost if the volatility was reduced to 10.500% when the spot rate fell to $1.2484/? The same call option cost if the volatility was reduced to 10.500% when the spot rate fell to $1.2484/ would be $ i . (Round to four decimal places.) A U.S.-based firm wishing to buy A European firm wishing to buy or sell euros (the foreian currencv) or sell dollars (the foreian currencv)
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