I NEED B. DOING A FOR HELP

(a) You purchase a call option on pounds for a premium of $0.03 per unit, with an exercise price of $1.64; the option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is $1.65, find your net profit per unit (pound).

A.) Call Premium = $0.03

Exercise price = $1.64

Spot price at maturity = $1.65

Total cost if option is exercised = $0.03 + $1.64 = $1.67

Selling price = $1.65

Profit (Loss) = $1.65-$1.67 = -.02 = ($0.02)

(b) The existing spot rate of the Canadian dollar is $0.82. The premium on the Canadian dollar put option is $0.04. The exercise price is $0.81. The option will be exercised on the expiration date if at all. Suppose you wrote (i.e. sold) such an option. If the spot rate on the expiration date is $0.87, calculate (i) the profit and (ii) effective sale price of the Canadian dollar at expiration.