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(Currency Options) The current spot exchange rate is $1.25 =1.00 and the three-month forward rate is $1.30 = ?1.00. Consider a three-month American call option

(Currency Options) The current spot exchange rate is $1.25 =1.00 and the three-month forward rate is $1.30 = ?1.00. Consider a three-month American call option on ?62,500 with a strike price of $1.20 = ?1.00. 1f you pay an option premium of $3,750 to buy this call contract, at what exchange rate will you break-even?(Be careful, not every information provided will be used)

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