Question: The current spot exchange rate is $1.55-1.00; the three-month U.S. dollar interest rate is 2 percent. Consider a three-month American call option on 62,500 (spot)

The current spot exchange rate is $1.55-1.00; the three-month U.S. dollar

The current spot exchange rate is $1.55-1.00; the three-month U.S. dollar interest rate is 2 percent. Consider a three-month American call option on 62,500 (spot) with a strike price of $1.50 = 1.00, what is the least that this option should sell for? Multiple Choice $0.05 x 62,500 $3,125 $3,125/1.02 $3,063.73 $0.00 none of the options

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