Please answer the next question based on the following quotes on currency options contracts for Swiss francs (CHF), where each contract has 62.500 CHFs. Exercise
prices, call and put premiums are in cents.
Calls
Puts
Vol. Last Vol. Last
62,500 Swiss Francs-European Style.
77 Oct 10 2.78
77 Dec 31 3.60
78 Nov 47 0.23
78 Dec 14 2.66 100 0.43
79 Oct 50 0.27
79 Nov 5 1.59
79 Dec 5 2.04
80 Nov 5 1.00
80 Dec 21 1.39
81 Oct 10 1.41
81 Nov 10 0.59 10 1.55
81 Dec
82 Nov 645 0.99
83 Nov 10 0.33 15 3.12
83 Dec 47 0.20
6 0.40
You buy one October CALL options contract with an exercise price of $0.77. If at the time of the option expiration date, the spot price for Swiss francs is $0.815, then
this call option is ____ and you incur a net ____
in-the-money, profit of $1,075
out-of-the-money, loss of $1,737.50
out-of-the-money, loss of $2,812.50
in-the-money, profit of $2,812.50
