$8$

Multiple Choice

$10$ points

For a European call option on a currency, the exchange rate is $1\mathrm{.}0000,$ the strike price is $0\mathrm{.}9100,$ the time to maturity is one year, the domestic risk$-$free rate is $5\%$ per annum, and the foreign risk$-$free rate is $3\%$ per annum. How low can the option price be without there being an arbitrage opportunity?

$0\mathrm{.}1048$

$0\mathrm{.}0900$

$0\mathrm{.}1344$

$0\mathrm{.}1211$