Problem 1: (30 points) In March, a speculator who is gambling that the Japanese yen will appreciate against the U.S. dollars pays $1,360 (premium) to buy a June 31 call option. This option gives the right to buy 12 X500,000 (Yen) in June at an exchange rate of 0.0081 $ for one yen. By the expiration date in June, the yen spot price has risen to 0.083$ a) is the call-option in-the-money, at-the-money or out-the-money? (10 points) b) Calculate the investor's net return on the contract. (10 points) c) What would you advise the investor to do if the spot price falls to 0.079? Explain. (10 points)