Question $28$

$3\mathrm{.}33$ pts

Please answer the next question based on the following quotes on currency options contracts for Swiss francs $($CHF$),$ where each contract has $62,500CHFs.$ Exercise prices, call and put premiums are in cents.

If you buy one December CALL options contract with an exercise price of $$0\mathrm{.}79.$ If at the time of the option expiration date, the spot price for Swiss francs is $$0\mathrm{.}805,$ then this call option is $q,,$ and you incur a net $$

$$ out$-$of$-$the$-$money; loss of $$1,275\mathrm{.}00$

out$-$of$-$the$-$money; loss of $$937\mathrm{.}50$

$$ in$-$the$-$money; loss of $$337\mathrm{.}50$

$$ in$-$the$-$money; profit of $$937\mathrm{.}50$