The Current Spot Exchange Rate Is $1

Multiple Choice

The current spot exchange rate is $1.55 = €1.00 and the three-month forward rate is $1.60 = €1.00.Consider a three-month American call option on €62,500.For this option to be considered at-the-money,the strike price must be

A) $1.60 = €1.00
B) $1.55 = €1.00
C) $1.55 * (1+i_$) ^3/12 = €1.00 *(1+i_€) ^3/12
D) none of the above