3. Consider a U.S. importer with a 125 000 payment to make to a French exporter in 90 days. The importer could purchase a European call option to have the euros delivered to him at a specified exchange rate (the strike price) on the due date. Suppose the option premium is $0.03 per euro and the exercise price is $1.35. 3.A. If at the time the importer's payment falls due, the value of the euro has risen to $1.45, the option would be in-the-money, at-the-money or out-of-the money. Explain. (2 marks) 3.B. Will the importer exercise its call option if the dollar/euro rate will be $1.45? Calculate the profit/loss that he will get? (2 marks) 3.C. If the rate has declined below the contracted rate to $1.31, the option would be in-the-money, at- the-money or out-of-the money. Explain. Calculate the profit/loss that he will get in that case. (3 marks) 3.D. What is the break-even point for the importer