The current GBP vs. SEK spot rate is S(SEK/GBP) = 12.40. In three months, the spot rate can take one of two values: 12.00 or 12.80. Three month interest rates are 1.5%pa in the UK and 2.5%pa in Sweden.

To the nearest thousand SEK what is the no-arbitrage SEK price of a three month put on GBP 10,000,000 vs. the SEK with strike price equal to current spot, ignoring any possible transaction costs?

Group of answer choices

109,000

1,834,000

None of the other answers.

1,355,000

148,000