Six-month european call option on the british pound

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Reference no: EM132072103

Suppose the current exchange rate is $ 1.84 divided by pound, the interest rate in the United States is 5.04 %, the interest rate in the United Kingdom is 4.17 %, and the volatility of the $/£ exchange rate is 10.8 %. 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 $ 1.84 divided by pound.

Reference no: EM132072103

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