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Suppose that he spot price of the Canadian dollar is US $0.95 and that the Canadian dollar/US dollar exchange rate has a volatility of 8% per annum. The risk-free rates of interest in Canada and the United States are 4% and 5% per annum, respectively. find out the value of a European call option to buy one Canadian dollar for US $0.95 in nine months. Use put-call parity to find out the price of a European put option to sell one Canadian dollar for US $0.95 in nine months. What is the price of a call option to buy US $0.95 with one Canadian dollar in nine months?

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