Question: The current spot exchange rate is $1.60 = 1.00; The three-month US dollar interest rate is 2%. Consider a three-month American call option on 62,500

The current spot exchange rate is $1.60 = 1.00; The three-month US dollar interest rate is 2%. Consider a three-month American call option on 62,500 with a strike price of $1.50 = 1.00. What is the least that this option should sell for?

A)$0.1 62,500 = $6,250

B)$6,250/1.6 = $3,906

C)$1.6062,500 = $96,875

D)$1.5062,500 = $93,750

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