Assignment 3: End of the Week Assignment: Using Call and Put OptionsScenario: Th

Assignment 3: End of the Week Assignment: Using Call and Put
OptionsScenario: The spot British pound is $1.933 and the
six-month forward rate is $1.925. The annualized six-month Eurodollar rate is
5.4% and the volatility of the British pound is 19.1%.Your Task: Calculate the values of the American call and
put options when the strike price is $1.915. Use the European option-pricing
model.Refer to Chapter 7: Futures and Options on Foreign Exchange to
solve this problem.Access the European FX Option Pricing Model template available
through the International Financial Management Online Learning Center: http://highered.mcgraw-hill.com/sites/0078034655/student_view0/excel_software.html