Assume you are presented with the following quotes for dollar-priced call options on the British pounds. Spot Price Strike Price Call Price (June) Call Price (July) $1.28 $1.26 $0.065 $0.07 $1.28 $1.27 $0.06 $0.065 $1.28 $1.28 $0.05 $0.06 $1.28 $1.29 $0.03 $0.04 Assume you purchase the at-the-money June call option. Which statement is correct? O A. Given that the option is at-the-money, it should be priced at $0.00 so this is evidence of market inefficieny. OB. Both the premium and the intrisic value of the option are $0.05 OC. The premium on the option is $0.05, however the instrinsic value is $0.00. OD. The premium on the options is $0.00, however the intrinsic value is $0.05 You are presented with the following dollar-priced quotes for put options on the Euro with a June expiration date. Spot Strike Put Price $1.12 $1.11 $0.02 $1.12 $1.12 $0.03 $1.12 $1.13 $0.04 $1.12 $1.14 $0.05 What is the break-even exchange rate for a June put option, with a strike price of $1.12?$ Assume you purchase 1 June contract with a strike of $1.12 and the exchange rate falls to $1.08 at expiration. What is your gross profit on this option? $ What is your net profit on this option? $ 7