1. You bought a call option with a strike price is $1.035/, written on 12,500. At which of the following spot exchange rate, your call option will become in the money? A. $1.012/ B. $1.035/ C. $1.058/ D. None of the above 2. You bought a put option with a strike price is $1.55/, written on 62,500. At which of the following spot exchange rate, your put option will become in the money? A. $1.52/E B. $1.55/ C. $1.58/ D. None of the above 3. You recently bought a June Euro call option with a strike price of $1.0200/, and an option premium of $0.0004/. The contract size (notional principal) is 125,000 euro. Upon maturity date, the spot exchange rate is $1.0234/. Should you exercise your option? What is the value of the option's intrinsic value? 4. What is the purpose of hedging? Is hedging aimed to profit from currency value changes in the future? Explain briefly