Calculate the price of a 1-year European option to give up 100 ounces of silver in exchange

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Calculate the price of a 1-year European option to give up 100 ounces of silver in exchange for 1 ounce of gold. The current prices of gold and silver are \(\$ 380\) and \(\$ 4\), respectively; the risk-free interest rate is \(10 \%\) per annum; the volatility of each commodity price is \(20 \%\); and the correlation between the two prices is 0.7 . Tgnore storage costs.

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