European call option on the british pound with strike price

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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: EM131566406

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