The current spot exchange rate is $$1\mathrm{.}25=1\mathrm{.}00$; the three$-$month U$.$S$.$ dollar interest

rate is $2\%.$ Consider a three$-$month American call option on $62,500$ with a strike

price of $$1\mathrm{.}20=1\mathrm{.}00.$ What is the intrinsic value of this option?

$$0\mathrm{.}0562,500=$$$3,125$

$$3,\frac{125}{1\mathrm{.}02}=$$$3,063\mathrm{.}73$

$$0\mathrm{.}00$

none of the above