The current spot exchange rate is $1.19 = 1.00 and the three-month forward rate is $1.21 = 1.00. You buy a call option on 62,500 with a strike price of $1.14 = 1.00 and pay an option premium (price) of $4375. At expiration, at what exchange rate will you break-even?

Question 23 options:

	$1.21 = 1.00
	$1.26 = 1.00
	$1.28 = 1.00
	$1.07 = 1.00
	$1.12 = 1.00
	$1.14 = 1.00