In a GBM world with riskless domestic and foreign interest rates, what would be the correct model for a FX plain vanilla option given the statement that this option is priced on the forward? I guess it would be the Garman Kohlhagen model or the Black (76) model but I'm a bit confused between the two in the context of pricing on spot vs. pricing on forward. I would appreciate an answer that scetches the main differences.
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