Assume a put option on Euro ( ) is written with a strike price of USD1.1200/, a premium payment of USD0.0300/ with an expiration date of 3 months from now. One contract size of Euro is 62,500 units. Answer this:

i) If a dealer holds five (5) option contracts, calculate his net profit when the Euro is traded at USD1.0150/.

ii) Determine whether the dealer should exercise the option or not if the Euro is traded at USD1.1150.