U.S. Dollar/Euro.The table indicates that a 1-year call option on euros at a strike rate of $1.2496/ will cost the buyer $0.0502/, or 4.00%. But that assumed a volatility of 10.500% when the spot rate was $1.2562/. What would the same call option cost if the volatility was reduced to 10.500% when the spot rate fell to $1.2478/? Question content area bottom Part 1 The same call option cost if the volatility was reduced to 10.500% when the spot rate fell to $1.2478/ would be?? (Round to four decimal places.)

Table:

Pricing Currency Options on the Euro
	A U.S.-based firm wishing to buy					A European firm wishing to buy
	or sell euros (the foreign currency)					or sell dollars (the foreign currency)
	Variable	Value				Variable	Value
Spot rate (domestic/foreign)	S0	$	1.2562			S0		0.7961
Forward rate (domestic/foreign)	F0	$	1.2470			F0		0.8020
Strike rate (domestic/foreign)	X	$	1.2496			X		0.8003
Domestic interest rate (% p.a.)	rd		1.454	%		rd		2.187	%
Foreign interest rate (% p.a.)	rf		2.187	%		rf		1.454	%
Time (years, 365 days)	T		1.000			T		1.000
Days equivalent			365.00					365.00
Volatility (% p.a.)	s		10.500	%		s		10.500	%
	d1		0.0327			d1		0.0727
	d2		-0.0723			d2		-0.0323
	N(d1)		0.5130			N(d1)		0.5290
	N(d2)		0.4712			N(d2)		0.4871
Call option premium (per unit fc)	c	$	0.0502			c		0.0337
Put option premium (per unit fc)	p	$	0.0529			p		0.0319
(European pricing)
Call option premium (%)	c		4.00	%		c		4.23	%
Put option premium (%)	p		4.21	%		p		4.01	%