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 $1.52 = 1.00. Immediate exercise of this option will generate a profit of

A) $6,125.

B) $6,125/(1 +i_$)^3/12.

C) negative profit, so exercise would not occur.

D) $1,875.