Answer Happy

U.S.​ Dollar/British Pound. Assuming the same initial values for
the​ dollar/pound cross rate in this table how much more would a
call option on pounds be if the maturity increases from 90
to 365 days? What percentage increase is this for the
length of​maturity?
1. If the maturity increases from 90 to 365
​days, a call option on pounds would be ​$ ______. (Round to 6
decimal places)
2. Therefore, the ​365-day call option would be
​$______ , more? or less? than the 90-day call
option. (Round to 6 decimal places and select either more or
less)
3. The percentage increase for the length of maturity is _____%.
(Round to 4 decimal places)
A U.S.-based firm wishing to buy or sell pounds (the foreign currency) A British firm wishing to buy or sell dollars (the foreign currency) Variable Value Variable Value SO $ 1.8674 so £ 0.5355 FO $ 1.8533 FO £0.5396 х $ 1.8000 х £0.5556 rd 1.453 % rd 4.525 % Spot rate (domestic/foreign) Forward rate (domestic/foreign) Strike rate (domestic/foreign) Domestic interest rate (% p.a.) Foreign interest rate (% p.a.) Time (years, 365 days) Days equivalent Volatility (% p.a.) rf 4.525 % rf 1.453 % T 0.247 T 0.247 90.00 90.00 s 9.400 % S 9.400 % d1 0.64800 d1 -0.60212 d2 0.60128 d2 -0.64884 0.74151 0.27355 N(1) N(D2) N(1) N(D2) 0.72617 0.25822 с $ 0.0669 с £0.0041 Call option premium (per unit fc) Put option premium (per unit fc) (European pricing) р $ 0.0138 р £0.0199 с 3.58 % с 0.77 % Call option premium (%) Put option premium (%) р 0.74 % р 3.72 %