Please show all of your work.

Instructions: Show all of your work for maximum credit. There are 40 points possible and your grade is determined at (# correct/40) x 100. 1. The current spot rate is $1.36/. A call option with a 6 month maturity has a strike price of $1.40/, and a premium of $0.028/. a. (2 points) Is this option in-the-money or out-of-the-money? Why? b. (3 points) What is the intrinsic value of this call option? c. (3 points) What is the time value of this call option