Question: U.S. Dollar-Euro. The table, , indicates that a 1 -year call option on euros at a strike rate of $1.2502=1.00 will cost the buyer $0.0462

 U.S. Dollar-Euro. The table, , indicates that a 1 -year calloption on euros at a strike rate of $1.2502=1.00 will cost the

U.S. Dollar-Euro. The table, , indicates that a 1 -year call option on euros at a strike rate of $1.2502=1.00 will cost the buyer $0.0462 per , or 3.70%. But that assumed a volatility of 10.500% when the spot rate was $1.2483=1.00. What would that same call option cost if the volatility was reduced to 10.500% when the rate fell to $1.2477=1.00? The same call option cost if the volatility was reduced to 10.500% when the spot rate fell to $1.2477=1.00 would be $ ' . (Round to four decimal places.) U.S. Dollar-Euro. The table, , indicates that a 1 -year call option on euros at a strike rate of $1.2502=1.00 will cost the buyer $0.0462 per , or 3.70%. But that assumed a volatility of 10.500% when the spot rate was $1.2483=1.00. What would that same call option cost if the volatility was reduced to 10.500% when the rate fell to $1.2477=1.00? The same call option cost if the volatility was reduced to 10.500% when the spot rate fell to $1.2477=1.00 would be $ ' . (Round to four decimal places.)

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