Question: Please explain how to obtain the answer. Thank you! Problem 20 A call option on euros is written with a strike price of S1.30/euro. Which

Please explain how to obtain the answer. Thank you!

Problem 20 A call option on euros is written with a strike price of S1.30/euro. Which spot price mazimizes your profit if you choose to exercise the option before maturity? A.50/ex B. S1.45/euro C. $1.40/euro D. $1.35/euro Answer: A

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