Given that S(/) is 1.15 and in the next year it either goes up to 1.25 or down to 1.03. How would you price a call option on 1000 USD running one year with strike price 1.15 if the annual risk free rate of the USD is 3% and 0.5% for the EURO? Also, if you take all of the numbers from above, how would you price a 1 year future option with the strike price of F(/) if the market is arbitrage free? I'm not sure if I'm understanding how to solve this.