1.Assume that a call option has an exercise price of $1.50/. At a spot price of $1.45/, the call option has

2.Jack Hemmings bought a 3-month British pound futures contract for $1.4400/ only to see the dollar appreciate to a value of $1.4250 at which time he sold the pound futures. If each pound futures contract is for an amount of 62,500, how much money did Jack gain or lose from his speculation with pound futures?

3.Suppose you purchase a June call option with a strike price of $1.46. When the contract matures in June the underlying price is $1.48. The cost of the option and the profit/loss at maturity are: