Question: You write a call option on pounds and give it to Scrooge McDuck to compensate him for some consulting work. The contract size is 125,000

You write a call option on pounds and give it to Scrooge McDuck to compensate him for some consulting work. The contract size is £125,000 and the exercise price is £0.6344/$. If the option expires when the spot rate is £0.6285/$, will Scrooge's treasure chest of dollars grow larger or smaller? By how much? (Scrooge takes his profit or loss in dollars). What is your profit or loss on this transaction?

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