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Brian sold a call option on British pound with the exercise price of USD 1.58/GBP at a premium USD 0.06/GBP. Contract size is GBP 62,500.

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Brian sold a call option on British pound with the exercise price of USD 1.58/GBP at a premium USD 0.06/GBP. Contract size is GBP 62,500. The spot rate at the maturity is USD 1.66/GBP. 1) Will the buyer exercise? 2) Calculate the Brian's payoff at maturity per GBP. 3) Calculate the Brian's profit per GBP. 4) Calculate the Brian's total profit. 5) List 3 other terminologies for contract size

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