An American firm has purchased equipment from a German firm for 250,000 euros on 90-day payment terms. The firm has purchased two 125,000 euro call option contracts, each with a strike price of $1.2 per euro. The premium is $.01 per euro. On the day that the call option contracts mature, the spot exchange rate for USD/EUR is $1.35. 1. Will the American firm exercise the option? Yes or No 2. The total cost of the option premium is $____ (just type in the dollar amount with no dollar sign) 3. Based on your answers to #1 and #2 above, the net payoff (i.e., profit or loss) for the American firm from this scenario is $_ ______ (just type in the dollar amount with no dollar sign)