A call option with a strike price of $1.30/ and a premium of $0.03/ is executed as the market price is $1.39/. The buyer of the option has purchased ten contracts (one contract is for 12,500). The total profit amounts to:

Question options:

	7,500
	$7,500
	11,250
	$11,250

Question 16 (1 point)

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A trader holds a European put option with a strike price off $1.30/ and a premium of $0.05/. At the expiration date the market rate is $1.40/. What should the trader do?

Question options:

	Let the option expire and make a loss equal to the premium of $0.05/
	Exercise and make a profit of $0.05/
	Exercise and make a profit of $0.10/
	Exercise and but face a loss of $0.10/