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U.S. Dollar Euro. The table, indicates that a 1-year call option on euros at a strike rate of 51 2498/e will cost the buyer 50 05567, or 4 38% But that assumed a volatility of 10 500% when the spot rate was 51 2665/6What would the same call option cost if the volatility was reduced to 10.500% when the spot rate fell to 512479767 The same call option cost if the volatility was reduced to 10 500% when the spot rate fell to 51 24791 would be $e (Round to tour decimat places) ed: ford sont hons Sto lon stor kion Istion ata Table AUS-based firm wishing to buy or sell euros (the foreign currency) A European firm wishing to buy or sell dollars (the foreign currency) Variable Variable Value SO Value $ 1.2665 $ 12572 SO 0.7896 0.7954 FO FO X $ 1.2498 0 8001 rd 1.454 % rd 2 189 % Spot rate (domestic/foreign) Forward rate (domestic foreign) Strike rate domestic foreign) Domestic interest rate (% p.a.) Foreign interest rate (% pa) Time (years, 365 days) Days equivalent Volatility (% pa) If 2.189 % rf 1.454 % 1.000 1.000 365.00 365.00 10 500 % 5 10.500 % d1 dt -0.0036 d2 0 1087 0.0037 0.5433 d2 -0.1086 N[d1) N(1) 04986 Print Done - Data Table Jot "FOGYOTT Time (years, 365 days) Days equivalent Volatility (% pa) 1.000 365 00 10 500 1000 365.00 10 500 d1 01087 d1 -0.0036 d2 d2 -0.1086 0.0037 0.5433 0.5015 N[d1) N(2) 04986 N(1) Nd2) 0.4568 C C Call option premium (per unit fc) Put option premium (per unit fc) (European pricing 5.0,0555 $0 0482 00304 E 0.0350 P P 50 c 385 Call option promium (45 Put option premium (*) 4.38 3.81 443 P Print Done