Consider the graph of a call option shown at right. The option is a three-month American call option on €62,500 with a strike price of $1.20 = €1.00 and an option premium of $3,125. What are the values of A, B, and C, respectively?
A.
A = –$3,125 (or –$.05 depending on your scale); B = $1.20; C = $1.25
B.
A = –€3,750 (or –€.06 depending on your scale); B = $1.20; C = $1.25