1. Assume that a speculator purchases a put option on British pounds (with a strike price of $1.10) for $.07 per unit. A pound option represents 31,250 units. Assume that at the time of the purchase, the spot rate of the pound is $1.10 and continually rises to $1.12 by the expiration date. The highest net profit possible for the speculator based on the information above is:

   	a.	$2,187.50
   	b.	$625.00.
   	c.	$1,250.00.
   	d.	$2,187.50.