You are a straddle writer. You simultaneously sell one call and put option on British pounds (underlying 31,250 units) with an exercise price of $1.95/. The premiums on the call and put are $.08 and $.04, respectively. If the spot price of the pound at option expiration is $2.05/, what is your profit from this strategy?

a. ($625)

b. $625

c. ($1875)

d. $1,875