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You are considering USD to EUR exchange rate. The current spot rate is 1 . 5 USD / EUR , and there is a call

You are considering USD to EUR exchange rate. The current spot rate is 1.5 USD/EUR, and there is a call option with the strike price of 1.5 USD/EUR and the time to maturity of one year. This call option is issued on 10,000 EUR. Suppose that in one year the spot rate will be 1.8 USD/EUR or 1.2 USD/EUR (only two states). Using the binomial option price model, compute the call option price. Assume the interest rate in US is 0.06 and that in the euro zone is 0.05.
Group of answer choices
3,000.00 USD
3,000.00 EUR
1,482.48 USD
2,830.19 USD
1,482.48 EUR

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