Arbitrage that exploits mispricing among three currency rates (like dollar/euro, Euro/pound, and dollar/pound) is called:

Intermarket arbitrage Locational arbitrage Covered interest arbitrage Interest parity arbitrage None of the above. It is called

A call option on the euro with a strike price of $1.2260/ is currently priced at (i.e. premium is) $0.0450/ The current spot rate is $1.2060/ . The time value of the call is:

-$0.0200/ $0.0200/ -$0.0650/ $0.0250/ $0.0450/

Refer to the information in the above question. At what exchange rate, S^*_T, does an option buyer break-even?

$1.2710/ $1.1810/ $1.1610/ $1.2510/