Suppose the current exchange rate is $1.80/£?, the interest rate in the United States is 5.25%?, the interest rate in the United Kingdom is 4.00%?, and the volatility of the? $/£ exchange rate is 10.0%. 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 $1.80/£.
The corresponding forward exchange rate is ?$1.8473/£. (Round to four decimal places)
Using the? Black-Scholes formula d1 is 0.4066 while N1 is ____ (Round to four decimal places)
Using the? Black-Scholes formula d2 is 0.3358 while N2 is ____(Round to four decimal places)
The price of the call is ?$ 0.416/£(Round to four decimal places)