1. The dollar to the euro is quoted at $1.1140/ today. Call options on the euro with an exercise price of $1.1120/ and expiration in three months are selling for $0.0240/. Each option contract calls for the exchange of 62,500. You start with $124,300 (plus or minus enough dollars to round to nearest whole contract).
   1. If you buy the euro calls, how much premium do you pay per contract?
   2. How many call contracts can you buy?
   3. If in three months the exchange rate is $1.1358/:
      1. Would you exercise?
      2. Hoe much more (or less) money would you request to round your purchase to the nearest whole contract?
      3. What would be your total payoffs?
      4. What would be your total profits/losses?