Suppose the current spot exchange rate between the U.S. dollar and British pound is $1.3138/. A European call option on pounds is expiring today. The call option has an exercise price of $1.3300/.At the same time, a European put option on pounds is expiring today. The put option has an exercise price of $1.3300/as well

1) Given the information above, which of the following is correct?

a. both the call option and the put option are in-the-money.

b. both the call option and the put option are out-of-the-money.

c. the call option is in-the-money while the put option is out-of-the-money.

d. the call option is out-of-the-money while the put option is in-the-money.

2) If you were holding the call option and the put option, what would you do with them?

a. exercise both the call option and the put option.

b. let both the call option and the put option expire.

c. exercise the put option and let the call option expire.

d. exercise the call option and let the put option expire.