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1. The current spot rate is S = $ 1.3545/ . You want to purchase call options with an Exercise price = $1.3650/. The call

1. The current spot rate is S = $ 1.3545/ . You want to purchase call options with an Exercise price = $1.3650/. The call premium = $0.0160/ and the contract size = 62,500.

a. If you purchase 1 call option, whats the total premium? (1 point)

b. At maturity, if the spot rate is $ 1.3800/ , whats the value of your call option? (2 points)

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