Jimmy Pools takes a position to sell his euros in a September futures contract on August 1st and holds the contract until the last trading day. The contract size is 125,000. Jimmy has presented the following information: Spot rate on Aug 1: 1.11 = $1.00 Spot rate on the last day: 1.04 = $1.00 Forward rate: 1.06 = $1.00 What is the effective cost of the contract? Group of answer choices $127,500 $130,000 $132,500 $138,750 none of the options