The current spot exchange rate is $1.25 = 1.00 and the three-month forward rate is $1.30 = 1.00. Consider a three-month American call option on 62,500 with a strike price of $1.20 = 1.00. If you pay an option premium of $5,000 to buy this call, at what exchange rate will you break-even?

a. $1.28 = 1.00

b. $1.32 = 1.00

c. $1.20 = 1.00

d. $1.38 = 1.00