Let the continuously compounded six-month USD interest rate be 3% p.a., let the analogous JPY interest rate

Question:

Let the continuously compounded six-month USD interest rate be 3% p.a., let the analogous JPY interest rate be 1% p.a., let the exchange rate be ¥98/$, and assume that the volatility of the continuously compounded annualized rate of appreciation of the yen relative to the dollar is 13%. Use the Garman-Kolhagen option pricing model to determine the yen price of a six-month European dollar call option with a strike price of ¥100/$. How does your answer change if the volatility were 16% p.a.?

Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity. Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...

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