Euro/Japanese Yen. A French firm is expecting to receive 10.4 million in 60 days as...
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Euro/Japanese Yen. A French firm is expecting to receive 10.4 million in 60 days as a result of an export sale to a Japanese semiconductor firm. What will it cost, in total, to purchase an option to with a strike price of E0.007353/? The spot rate is 0.007300/\ (See table for initial values.) The cost, in total, to purchase an option with a strike price of 0.007353JPY (knowing that its spot rate is 0.007300/JPY)is )". (Round to the nearest cent) X Data table A Japanese firm wishing to buy A or sell euros (the foreign currency) A European firm wishing to buy or sell yen (the foreign currency) Variable Value Variable Value rd 2.1870 % rd 0.0875 % Domestic interest rate (% p.a.) % Foreign interest rate (% p.a.) Volatility (%p.a.) rf % rf % 0.0875 10.000 2.1870 10.000 s % S % d1 -0.45027 d1 -0.07363 d2 -0.49082 d2 -0.11418 0.32626 0.47065 N(81) Nd2) N(1) N(2) 0.31178 0.45455
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