Assume you write a call option on euros with a strike price of $1.15/Ac‚¬ at a premium of 2.50A??c per euro ($0.025/Ac‚¬) and with an expiration date three months from now. The option contract is for Ac‚¬100,000. Calculate your profit or loss should the holder make the exercise decision at a time when the euro is traded spot at .....
A)$1.10 B) $1.15 C) $1.20 D) $1.25 E) $1.30 F) $1.35 G) $1.40
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