Question 10 Assume a call option is written with a strike price of $1.25/ at a premium of 3.80 cents per euro ($0.0380/) and with an expiration date three months from now. The option is for 100,000. Calculate your profit or loss should you exercise before maturity at a time when the euro is traded spot at the following:

a) $1.10/

b) $1.15/

c) $1.20/

d) $1.25/

e) $1.30/

f) $1.35/

Subject: international finance