Find the price of an European call on futures if the futures price is 106 the exercise price is 100 the continuously compounded risk free rate is 7.2% the volatility is 0.41 and the call expires in six months. please shows all the steps .
A. 14.57
B. 17.04
C. 6.00
D. 19.78
What is the lower bound of an European foreign currency call if the spot rate is 2.25 the domestic interest rate is 5.5% the foreign interest rate is 6.2% the option expire in three months and the exercise price is 2.20?
A. 0.0457
B. 8.9
C. 10.4
D. 6.5