1. Pat purchased a call option on Canadian Dollars for U.S. Dollars at $.03 per Canadian Dollar. The strike price was $.85, and the spot rate at the time of exercise is $.97, how much did Pat make if the call option allowed for the purchase of 10,000 Canadian Dollars?
2. Frank bought a Euro put option for e.025 per unit. If the put option allows for Euros to be sold for U.S. Dollars with a strike price of e.90, will Frank employ the put option if the exchange rate moves to e.95? If, Frank exercises the put option, how much better off is Frank due to the put option?