Consider a long position in a call option on the US dollar. X = 22 and S = 22.50. c = $2.00

A) Should the option be exercised?

B) What is the intrinsic value of the option?

C) What would be the financial gain/loss in case of exercising?

D) Plot the payment profile.

E) How is the option found: In the money, Out the money, or At the money?

F) Repeat the exercise with S = 24.50

G) And with S = $21.50

H) And with S = $24