i) The current exchange rate is 1.40 US dollars per Euro

ii) The US dollar continuously compounded risk-free interest rate is 5%

iii) The Euro continuously compounded risk-free interest rate is 8%

Consider a 6-month dollar-denominated European call option on Euro that allows purchasing one Euro at the rate of 1.42 US dollars per Euro. This call option costs $0.10.

Suppose an investor purchasing one such call option. Determine the investor's profit in the following two situations:

(a): The exchange rate at expiration is 1.40 US dollars per Euro;

(b): The exchange rate at expiration is 1.50 US dollars per Euro.