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The corresponding forward exchange rate

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Reference no: EM131825534

Suppose the current exchange rate is $1.84 divided by pound$1.84/£?, the interest rate in the United States is 5.11%?, the interest rate in the United Kingdom is 3.98%?, and the volatility of the? $/£ exchange rate is 10.9%. 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$1.84/£.

The corresponding forward exchange rate is:

Using the? Black-Scholes formula  d1 is__ while N1 is__

The price of the call is: ___

Reference no: EM131825534

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