In April $2016,$ an FI bought a one$-$month sterling T$-$bill paying $100$ million in May $2016.$ The FI's liabilities are in dollars, and current exchange rate is $$1\mathrm{.}6401/1.$ The bank can buy one$-$month options on sterling at an exercise price of $$1\mathrm{.}60/1.$ Each contract has a size of $31,250,$ and the contracts currently have a premium of $$0\mathrm{.}014$ per $.$ Alternatively, options on foreign currency futures contracts, which have a size of $62,500,$ are available for $$0\mathrm{.}0106$ per $.$

If the exchange rate in one month is $$1\mathrm{.}55/1,$ what action should the FI take in regards to the hedge?

A$)$ Call the $100$ million proceeds of the T$-$bill from the option writer for $$155$ million.

B$)$ Put the $100$ million proceeds from the T$-$bill to the option writer for $$155$ million.

C$)$ Allow the option contracts to expire since they are out of the money.

D$)$ Call the $100$ million proceeds of the T$-$bill from the option writer for $$160$ million

E$)$ Put the $100$ million proceeds from the T$-$bill to the option writer for $$160$ million.