With reference to problem 10, put options with the same strike price and a January maturity for British pounds were traded at \($0.05\) on October 23.

Data from in problem 10.

On October 23, the closing exchange rate of British pounds was $1.70. Calls that would mature the following January with a strike price of$\$1.75$ were traded at $0.10.

(a) Were the put options in the money, at the money, or out of the money?

(b) Compute the intrinsic value of the put.

(c) If the exchange rate of British pounds falls to \($1.65\) just prior to expiration, what is the percentage return on investment for an investor who purchased a put on October 23?