Suppose the current exchange rate is $1.78/£?, the interest rate in the United States is 5.09%?, the interest rate in the United Kingdom is 4.14%?, and the volatility of the? $/£ exchange rate is 9.8%. Use the? Black-Scholes formula to determine the price of a? six-month European call option on the British pound with a strike price of $1.78/£.
The corresponding forward exchange rate is ?$____/£. (Round to four decimal places)
Using the? Black-Scholes formula d1 is____ while N1 is ____ (Round to four decimal places)
Using the? Black-Scholes formula d2 is ___ while N2 is ____(Round to four decimal places)
The price of the call is ?$____/£(Round to four decimal places)