The spot rate and the 3-month forward rate for British pound are quoted at $1.1050 and $1.1100 respectively. The British pound is trading at an annualized premium/discount of

a) 1.81% b) -1.80%

c) 0.45% d) -0.4505%

You own a Canadian June 22 call option (size C$100,000) at the strike price $0.7340 for which you had paid a premium of $0.005. The spot rate today is $0.7500. Ignoring the interest cost on the premium, if you exercise the option today, your profit/loss is

a. $1,600.00 b. $1,100.00

c. - $1,600.00 c. None of the above