$U.S.$ Dolla$\frac{r}{E}$uro. The table, $,$ indicates that $a1-$year call option $on$ euros $at$ a strike rate $of$

$$\frac{1\mathrm{.}2499}{}$ will cost the buyer $$\frac{0\mathrm{.}0492}{},or3\mathrm{.}92\%.$ But that assumed a volatility $of10\mathrm{.}500\%$ when

the spot rate was $$\frac{1\mathrm{.}2546}{}.$ What would the same call option cost $if$ the volatility was reduced $to$

$10\mathrm{.}500\%$ when the spot rate fell $to$ $$\frac{1\mathrm{.}2482}{}?$

The same call option cost $if$ the volatility was reduced $to10\mathrm{.}500\%$ when the spot rate fell $to$

$$\frac{1\mathrm{.}2482}{}$ would $be$ $

$.(Roundto$ four decimal places.$)(Click$ the icon $to$ copy table into a spreadsheet.$)$

Pricing Currency Options $on$ the Euro