Suppose the current exchange rate is $1.78/£?, the interest rate in the United States is 5.08%?, the interest rate in the United Kingdom is 4.23%?, and the volatility of the? $/£ exchange rate is 10.9%. 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/£.
a- The corresponding forward exchange rate is .....
b-Using the Black-Scholes formula d1 is ..... , while N1 is ......
c-Using the Black-Scholes formula d2 is ......, while N2 is .....
d-The price of the call is ......