Find the Dollar Value Today of a 1-Period At-The-Money Call $i _ {€ } = 2 \%$

Multiple Choice

Find the dollar value today of a 1-period at-the-money call option on €10,000.The spot exchange rate is €1.00 = $1.25.In the next period,the euro can increase in dollar value to $2.00 or fall to $1.00.The interest rate in dollars is i_$ = 27.50%; the interest rate in euro is $i _ {€ } = 2 \%$ .

A) $3,308.82
B) $0
C) $3,294.12
D) $4,218.75