Corresponding forward exchange rate

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Suppose the current exchange rate is $1.80/£?, the interest rate in the United States is 5.25%?, the interest rate in the United Kingdom is 4.00%?, and the volatility of the? $/£ exchange rate is 10.0%. Use the? Black-Scholes formula to determine the price of a? six-month European call option on the British pound with a strike price of $1.80/£.

The corresponding forward exchange rate is $____/£. ?(Round to four decimal? places.)

Using the? Black-Scholes formula d1 is ______?, while N1 is ______. ?(Round to four decimal? places.)

Using the? Black-Scholes formula d2 is _______?, while N2 is _______. ?(Round to four decimal? places.)

The price of the call is ?$______?/£. ?(Round to four decimal? places.)

Reference no: EM131957474

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