On March 15, 2010, you bought call options on 250,000 euros (EUR) with an exercise price of $1.220 that expire on Sep. 15, 2010. The table below summarizes EUR spot prices and the option premiums for September EUR call option observed on March 15 and Aug. 8 (i.e., five weeks before expiration):

	Mar. 15	Aug. 8
EUR spot price	$1.240	1.300
Option premium for EUR call with a strike price $1.220	$0.060	0.100

Answer questions (a) and (b) below.

1. Suppose you exercise the call options (rather than sell-close your option position) on Aug. 8 to buy and sell EUR 250,000. What will be your net gain or loss taking into account the option premium paid?
2. Suppose you close out your call option position (i.e., selling the option, rather than exercising it) on Aug. 8. What will be your net gain or loss?