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If we buy a foreign currency, we are concering about depreciation/appreication of local/foreign currency.
In futures, we have to take the opposite position.
Say 1.5$/UK Pound
In case of buying $, our risk would be reducing the rate. Say it will be 1.3$/UK Poind.
In this case, we have to sell the futures now and buy later at lower rate; if the contract currency is UKPound. That means you will be selling UKpound to buy $.Shall we say you will receive $ and as result, you have to sell $ buy UK pounds. If the contract currency is pound you have to buy futures now; which you will enable to sell it at higher price.
If the d1 is 0.814, then check the std normal distribution table for 0.81 (go to row 0.8 and then go to column 0.01. Which has value of 0.291.
Therefore, N(di) would be 0.5 + 0.291 = 0.791. If the 0.81 is negative then 0.291 deduct from 0.5 (0.5-,291)
40 X 50000 X (0.085/400) = 4,250
No of contracts = (30,000,000 /3 X 2) / 500000 = 40
0.085/100 (This will show the value at percentage)
And 0.085 p. a interest cost. So we have to find out for 3 months.
This will give (0.085/100/12*3) = 0.085/400Do remember interest options always for 3 months; which premium will be quoted in p.a. basis
Hope above helps