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5. The dollar to the euro is quoted at $1.1040/ today. Call options on the euro with an exercise price of $1.0880/ and expiration in

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5. The dollar to the euro is quoted at $1.1040/ today. Call options on the euro with an exercise price of $1.0880/ and expiration in three months are selling for $0.0360/. Each option contract is for 62,500. You start with $126,000. a. How much premium do you pay per contract? b. How many call contracts can you buy? c. If in three months the exchange rate is $1.0980/: i. Would you exercise? ii. What would be the total payoffs? iii. What would be the total profits/losses

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