1. Assume that a speculator writes a European put option on British pounds (with a strike price of $1.50) for $0.05 per unit. A pound option represents 31,250 units. Assume that at the time of the purchase, the spot rate of the pound is $1.51 and is $1.62 on the expiration date. The net profit for the speculator based on the information above is:

a. $3,750.00

b. $2,187.50

c. $1,562.50

d. -$1,562.50