Question 38 (4 points) The current spot exchange rate is $1.29 - 1.00 and the three month forward rate is $1.33 - 1.00. You buy a call option on 62,500 with a strike price of $1.25 - 1.00 and pay an option premium (price) of $3750. At expiration, at what exchange rate will you break-even? $1.19 = 1.00 $1.23 - 1.00 $1.27 = 1.00 $1.31 - 1.00 $1.35 = 1.00 $1.39 = 1.00