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You purchased a European foreign exchange option contract to buy 5000 UK pound at the price of $1.30/ which expires today. You have paid $140

You purchased a European foreign exchange option contract to buy 5000 UK pound at the price of $1.30/ which expires today. You have paid $140 for the contract. Suppose the spot rate on the expiration date, today, is $1.32/, what will be your optimal decision for the contract (exercise or not exercise)? Discuss why or why not.

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