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 $1.6401/1. The bank can buy one-month options on sterling at an exercise price of $1.60/1. Each contract has a size of 31,250, and the contracts currently have a premium of $0.014 per . Alternatively, options on foreign currency futures contracts, which have a size of 62,500, are available for $0.0106 per . If the exchange rate in one month is $1.55/1, what action should the FI take in regards to the hedge? 20) 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.