You hold 1 contract on a 132 September Put option on British pound. The premium of the contract is $120 per contract. The contract size is GBP 10,000.

Suppose at expiration date, the spot rate is S(USD/GBP)=1.3105. Answer the following questions.

(1) Is this Put option "In-the-money" or "Out-of-the-money"?

(2) What is the payoff of this contract at expiration?

(3) What is the profit of this contract at expiration?

(4) What is the ROR of this contract if it is exercised at expiration?

(5) Should you exercise or not exercise this option? Why or why not?