Find the value of a one-year put option on $15,000 with a strike price of 10,000. In one year the exchange rate (currently S₀($/) = $1.50/) can increase by 60% or decrease by 37.5% (i.e. u = 1.6 and d = 0.625). The current one-year interest rate in the U.S. is i_$ = 4% and the current one-year interest rate in the euro zone is i = 4%. PLEASE SHOW STEP BY STEP WORK

A.

1,525.52

B.

$3,328.40

C.

$4,992.60

D.

2,218.94

E.	None of the above