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. Should you exercise the option before maturity at a time when the euro is traded spot at $1.10, $1.15, $1.20, $1.25, $1.30, $1.35, $1.40?

Note: the option premium is 3.8 cents per euro, not 38 cents per euro.

Reply and attach your answers in the excel sheet please.