Problem 7-16 (algorithmic) Question Help Euro/British Pound. How would the call option premium change on the right to buy pounds with euros if the euro interest rate changed to 4.02% from the initial values listed in this table: The call option on British pounds, if the euro interest rate changed to 4.02%, would be \/. (Round to four decimal places.) Using the browser's print will lead to an undesirable print-out. Use the Print Item from the "Question Help" menu to get a better prifitiming Currency Options on the Euro A U.S.-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 1.4730 1.4654 1.5000 SO FO FO 0.6789 0.6824 0.6667 X rd 2.072 % rd 4.160 % Spot rate (domestic/foreign) Forward rate (domestic/foreign) Strike rate (domestic/foreign) Domestic interest rate (% p.a.) Foreign interest rate (% p.a.) Time (years, 365 days) Days equivalent Volatility (% p.a.) rf 4.160 % 2.072 % T 0.247 0.247 90.00 90.00 S 11.400 % S 11.400 % d1 d1 0.44 -0.38 -0.44 d2 d2 0.38 0.67 0.35 N(d1) N(D2) N(1) N(d2) 0.33 0.65 Call option premium (per unit fc) Put option premium (per unit fc) (European pricing) 0.0189 0.0533 0.0241 0.0086 p C % C 3.55 % Call option premium (%) Put option premium (%) 1.28 3.62 p % 1.26 % Problem 7-16 (algorithmic) Question Help Euro/British Pound. How would the call option premium change on the right to buy pounds with euros if the euro interest rate changed to 4.02% from the initial values listed in this table: The call option on British pounds, if the euro interest rate changed to 4.02%, would be \/. (Round to four decimal places.) Using the browser's print will lead to an undesirable print-out. Use the Print Item from the "Question Help" menu to get a better prifitiming Currency Options on the Euro A U.S.-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 1.4730 1.4654 1.5000 SO FO FO 0.6789 0.6824 0.6667 X rd 2.072 % rd 4.160 % Spot rate (domestic/foreign) Forward rate (domestic/foreign) Strike rate (domestic/foreign) Domestic interest rate (% p.a.) Foreign interest rate (% p.a.) Time (years, 365 days) Days equivalent Volatility (% p.a.) rf 4.160 % 2.072 % T 0.247 0.247 90.00 90.00 S 11.400 % S 11.400 % d1 d1 0.44 -0.38 -0.44 d2 d2 0.38 0.67 0.35 N(d1) N(D2) N(1) N(d2) 0.33 0.65 Call option premium (per unit fc) Put option premium (per unit fc) (European pricing) 0.0189 0.0533 0.0241 0.0086 p C % C 3.55 % Call option premium (%) Put option premium (%) 1.28 3.62 p % 1.26 %