The spot exchange rate in dollars per euro is $1.31. Dollar denominated interest rates are 4.0% and euro denominated interest rates are 3.0%. What is the difference in call and put option prices given a 2-year option and a $1.34 strike price?
A) -$0.1041
B) -$0.0652
C) $0.1233
D) $0.1546
A
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