Question: 2. Write an expression for the value of an option to exchange 280,000 British pounds sterling for 300,000 Euros on a date 9 months from

2. Write an expression for the value of an option to exchange 280,000 British pounds sterling for 300,000 Euros on a date 9 months from now. Assume that the 9 month continuously compound rate for the pound is 4%, while it is 3% for the Euro. Leave the volatility as "o", explain what spot rate "S" you would need to use, and clearly show all the formulas involved. The accounting currency is sterling

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