Today is the expiration day of a put option on the euro that you purchased two weeks ago when the spot rate was $1.1260/. The strike rate on the option is $1.1240/ and the premium was $0.0240/.

1.) What were the intrinsic value and the time value of the put at the time of purchase?

2.) If todays spot rate is $1.1290/, would you exercise? Why or why not? How much would your payoff be (payoff is value of option position at expiration)? How much would your profit/loss be?

3.) if todays spot rate is $1.0910/, would you exercise? Why or why not? How much would your payoff be (payoff is value of option position at expiration)? How much would your profit/loss be?

4.) At what expiration spot rate would you break even?