You purchased a call option on euros with a strike price of $$1\mathrm{.}10$ per euro.

Required:

a$.$ Is your call option in$-$the$-$money if euros are trading at $$1\mathrm{.}05$ per euro in the spot market at maturity?

b$.$ If euros are trading at $$1\mathrm{.}05$ per euro in the spot market at maturity, will you exercise your call option or let it expire?

c$.$ If the spot rate at maturity is $$1\mathrm{.}20$ per euro, will you exercise this option?

Is your call option in$-$the$-$money?

Will you exercise your call option or let it expire?

Will you exercise the option if the spot rate at maturity is $$1\mathrm{.}20$ per euro?