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Find the dollar value today of a 1-period at-the-money put option on 10,000. The spot exchange rate is 1.00 = $1.25. In the next period,

Find the dollar value today of a 1-period at-the-money put option on 10,000. The spot exchange rate is 1.00 = $1.25. In the next period, the euro can increase in dollar value to $2.00 or fall to $1.00. The interest rate in dollars is i$ = 27.50%; the interest rate in euro is i = 2%.

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