Use the binomial option pricing model to find the value of a call option on $10,000$ with a

strike price of $15,000.$ The current exchange rate is $\frac{1\mathrm{.}50}{}1\mathrm{.}00$ and in the next period the

exchange rate can increase to $\frac{2\mathrm{.}40}{}$ or decrease to $\frac{0\mathrm{.}9375}{}.$ The current interest rates

are $i_{}=3\%$ and are $i_{}=4\%.$

Choose the answer closest to yours.