Question: You are looking at a call option on the pound in which the underlying (i.e. the pound) is at $1.218 per pound at expiration, the

You are looking at a call option on the pound in which the underlying (i.e. the pound) is at $1.218 per pound at expiration, the options are on 10,000 pounds, the exercise price is $1.105 per pound, and the option premium was $0.02 per pound when the option was purchased. What is the payoff (i.e. intrinsic value) at expiration of this option? Payoff is $1,130 Payoff is - $1,130 Payoff is -$1,000 Payoff is $0 Payoff is $1,000

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