Question $4$

$2\mathrm{.}5$ pts

The current spot exchange rate is $$\frac{1\mathrm{.}48}{}$lon. Consider a three$-$month American call option on $125,000$ with a strike price of $$\frac{1\mathrm{.}52}{}.$ If you pay an option premium of $$8,400$ to buy this call, at what exchange rate will you break$-$even?

$$\frac{1\mathrm{.}7264}{}$

$$\frac{1\mathrm{.}5734}{E}$

$$\frac{1\mathrm{.}6240}{}$

$$\frac{15872}{C}$