A speculator buys a put option on New Zealand dollars with a strike price of $0.80 and a premium of $0.02. If the Australian dollar spot rate is $0.72 on the expiration date. Should the speculator exercise the option on this date or let the option expire? Answer Choice Group

a.The speculator must let the option expire.

b.The speculator neither wins nor loses with this transaction (it breaks even).

c. The speculator must exercise the option.

d.It is not possible to determine an answer with this information.