U.S. Dollar Euro. The table, em Indicates that a 1-year call option on euros at a strike rate of $125017 will cost the buyer 50.0555/, or 4.38% But that assumed a volatility of 10 500% when the spot rate was $126697 What would the same call option cost if the volatility was reduced to 10.500% when the spot rate fell to 51 248276? The same call option cost the volatility was reduced to 16 500% when the spot rate foll 10 51 2482/ would be 5 (Round to four decimal places.) 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 Value Variable Value SO SO 0.7893 FO FO 51.2669 $ 12576 $ 1.2501 1.452 0.7951 0.7999 X rd Spot rate (domestic foreign) Forward rate (domestic/foreign) Strike rate (domestic foreign) Domestic Interest rate (% pa) Foreign interest rate (% pa) Time (years, 365 days) Days equivalent Volatility (% pa) % rd f 2.186 1 452 2 186 % rf T 1.000 T 1 000 365.00 10 500 % 365.00 10.500 d1 02 N(41) (12) 0.1095 0.0015 0.5436 d1 2 N(1) N(42) 0.0048 -0.1098 0.4981 0.4563 0 5018 500565 Call option premium (perc) Put option promom (per unit) (European pricing P S00401 O 0301 0.0351 P Caloption predom Put options premis 315