Question: A CALL OPTION ON US DOLLAR IS Available with a strike price of gh3.900. Esther a speculator purchased the option for a premium of 0.25.

A CALL OPTION ON US DOLLAR IS Available with a strike price of gh3.900. Esther a speculator purchased the option for a premium of 0.25. the USD spot rate on the day of expiration is 4.050

a. Is the call option in the money? Explain?

b. How much profit/Loss per unit did kofi make on this call option

c. What is the net profit per unit to the seller of this call option?

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