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What is lower bound of an european foreign currency call

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Reference no: EM131517081

Find the price of an European call on futures if the futures price is 106 the exercise price is 100 the continuously compounded risk free rate is 7.2% the volatility is 0.41 and the call expires in six months. please shows all the steps .

A. 14.57

B. 17.04

C. 6.00

D. 19.78

What is the lower bound of an European foreign currency call if the spot rate is 2.25 the domestic interest rate is 5.5% the foreign interest rate is 6.2% the option expire in three months and the exercise price is 2.20?

A. 0.0457

B. 8.9

C. 10.4

D. 6.5

Reference no: EM131517081

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