Calculate the theoretical value of a call option


Please assist with the given finance-related problems.

1) Use options pricing model to calculate the theoretical value of a 12-month Call Option on the British Pound with a strike price of $1.65 per pound.

2) Use same model to calculate the theoretical value of a 1-month Put Option on the Japanese Yen with a strike price of $0.74 per Yen 100.

Note: use LIBOR interest rates and data based on market close, February 2, 2007. Also, use excel spread sheet and explain how get and read information from LIBOR.

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Finance Basics: Calculate the theoretical value of a call option
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