The current spot exchange rate is $1.55 = 1.00 and the three-month forward rate is $1.60 = 1.00. Consider a three-month American call option on 62,500 with a strike price of $1.50 = 1.00. Immediate exercise of this option will generate a profit of

Group of answer choices

$3,125

$6,125/(1 + i$)^3/12

negative profit, so exercise would not occur

$6,125.

None of the other answers