Question: 2. You write a call option on pounds and give it to Scrooge McDuck to compensate him for some consulting work on risk management. The

2. You write a call option on pounds and give it

2. You write a call option on pounds and give it to Scrooge McDuck to compensate him for some consulting work on risk management. The contract size is 125,000 and the exercise price is 0.6344/$. If the option expires when the spot rate is 0.6285/$, will Scrooge's treasure chest of dollars grow larger or smaller? By how much? (Assume Scrooge McDuck takes any profit in dollars.)?||

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