In currency markets the letters CAD refers the Canadian dollar whereas USD refers to the US dollar. The CAD/USD spot exchange is 1.40. The continuously compounded risk free rate in both countries is 0.25%. The volatility of price changes in the exchange rate is 25%. Using Black-Scholes, determine the price of 1-year European call option (in CAD) to buy USD if the CAD/USD strike is 1.5. a) 0.04 c) 0.08 e) 0.12 b) 0.06 d) 0.10