Foreign exchange options a Claudia Speculator, IB Investments Ltd, bought 100 euro call options at \($0.01\) per option (i.e. one cent per option) with a strike price of \($1.25.\) She exercised them and sold the proceeds at a spot price of \($1.27.\) How much profit did Claudia make? b Thomas Banker, NPI Bankers, sold 100 euro put options with a strike price of \($1.25,\) receiving a premium of \($0.005\) (i.e. one-half of one cent per option). The put expired when the spot price was \($1.20.\) 

(i) Was the put in or out of the money from the point of view of the buyer? 

(ii) How much money did Thomas make or lose as the seller (what is his profit/loss on the put he sold)? 

(iii) Did he have to honor the put?