You bought a Oct.22 put option on euro with a strike price (K) of $1.1850/ in March 22 and paid a premium of $0.015/. The current spot exchange (S) rate for euro is $1.1750/. Contract size = 100,000

(i) What are the intrinsic and the time values of this option?

(ii) (a) What is the profit/loss if the option is exercised at expiration if the spot rate settles at $1.1650/ ? (b) if the spot rate settles at $1.1950? The U.S. interest rate is 2%.