Assume the spot Swiss franc is $0.7000 and the six-month forwardrate is $0.6950.

Assume the spot Swiss franc is $0.7000 and the six-month forwardrate is $0.6950. What is the minimum price that a six-monthAmerican call option with a striking price of $0.6800 should sellfor in a rational market? Assume the annualized six-monthEurodollar rate is 3.5 percent.Use formulas to calculate theanswers and clearly label your analysis. In 200- 300 words explainyour answer and your rationale.