I'm sure you must be familiar with the Black–Scholes formula among others. Being about a European style option makes the question rather irrelevant since most are American style and besides that the formulas only give you a guideline. But tests are often exercises without good purpose. In the real world all that matters is a willing buyer and a willing seller to determine the price.

Should add I never plugged numbers in Black-Scholes for currency options and don't recall it providing for multiple interest rate variables. Perhaps the difference 6 to 8 would work.

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3) Find the price of 1-year European call option for ￡1 with strike price of 1.3$/￡ if current spot rate is 1.7$/￡ and next year spot rate can be either 1.8$/￡ or 1.5$/￡. The U.S. interest rate is 8% and the U.K interest rate is 6%?