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5. Assume a call option on Euros is written with a strike price of $1.2500/ at a premium of 3.80 per euro ($0.0380/) and with

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5. Assume a call option on Euros is written with a strike price of $1.2500/ at a premium of 3.80 per euro ($0.0380/) and with an expiration date three months from now. The option is for 100,000. Calculate your profit or loss if the Euro is traded in the spot market at a) $1.10/ , b) $1.15/, c) $1.20/, d) $1.25/, e) $1.30/, f) $1.357, and g) $1.40/. on the date of expiration. (Hint: you decide if the option is to be exercised)

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