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The current spot exchange rate is $1.55- 100 and the three month forward rate is $1,60 100. Consider a three-month American call option on 62,500

The current spot exchange rate is $1.55- 100 and the three month forward rate is $1,60 100. 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 Muple Choice negative proft, so exercise would not occur 16325

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