The strike price must be $1.55 = €1.00
Explanation:
Dollar is the name of the currency used in America. Euro is the name of the currency used in European countries.
Strike price is a fixed price at which the product is purchased or sold.
Given:
The exchange rate of currency = $1.55 = €1.00
Three-month forward rate = $1.60 = €1.00
The strike price must be $1.55 = €1.00
