This table indicates that the current exchange rate between US dollar and British pound is $1.2938/. The price of the call option expiring in 1 month with the exercise price $1.3100/ is $0.0056. The price of the matching put option (expiring in 1 month, with the exercise price $1.3100/) is $0.0205.

1. This information implies

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. The intrinsic value of the call option above is

a. $0.0162.

b. $0.0084.

c. $0.

d. $0.0162.

3. The speculative (time) value of the put option above is

a. $0.

b. $0.0043.

c. $0.0162.

d. $0.0205.