An American company has a 60 day payable of 1 million. A bank writes the American company a call option for a quantity of 1 million and with maturity in 60 days. The maturity date of the option is the same as the date of the payable. The call option has a strike price of $1.10. The option premium is $0.01; therefore the total premium paid is $10,000.

If the spot rate for the euro is $1.08 in 60 days, which of the following is a correct statement?