Question: Euro s strike / contract price = $ 1 . 1 0 , spot price = $ 1 . 1 5 . Do you exercise

Euro

s strike

/

contract price

=

1.10,

spot price

=

1.15 .

Do you exercise if you have a call option? What if you have a put option? How much is the profit in each case? Assume the option premium is negligible.

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