Find the value of a call option written on €100 with a strike price of $1.00 = €1.00.In one period there are two possibilities: the exchange rate will move up by 15% or down by 15% .The U.S.risk-free rate is 5% over the period.The risk-neutral probability of dollar depreciation is 2/3 and the risk-neutral probability of the dollar strengthening is 1/3. 
Definitions:
Implicit Interest Rate
An interest rate inferred from the cost of borrowing, or the return on investment, that is not explicitly stated.
AASB 16
The Australian Accounting Standards Board standard on leases, which outlines the principles for recognition, measurement, presentation, and disclosure of leases.
IFRS 16
The International Financial Reporting Standard dictating lease accounting, requiring lessees to recognize nearly all leases on the balance sheet.
Lease Agreements
Contracts that outline the terms under which one party agrees to rent property owned by another party.
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