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The current spot exchange rate is $1.25/ and the three-month forward rate is $1.30/. Consider a three-month European put option on 125,000 with a strike

The current spot exchange rate is $1.25/ and the three-month forward rate is $1.30/. Consider a three-month European put option on 125,000 with a strike price of $1.20/. If you pay an option premium of $5,000 to buy this put option, at what exchange rate will you break-even?

$1.24/

$1.16/

$1.20/

$1.34/

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