Find the Lower Bound of a European Foreign Currency Put

Multiple Choice

Find the lower bound of a European foreign currency put if the spot rate is $3.50,the domestic interest rate is 8 percent,the foreign interest rate is 7 percent,the option expires in six months,and the exercise price is $3.75.(The interest rates are continuously compounded. )

A) zero
B) $0.250
C) $0.366
D) $0.108
E) none of the above