1 You write a put option on JPY with a strike price of USD0 008 JPY (JPY125 00 USD) at a premium of USD0 008 per JPY and with an expiration date six months from now The option is for JPY12,500,000 What is your profit or loss at maturity if the ending spot rates are a JPY110 00 USD b JPY122 00 USD c JPY135 00 USD d JPY140 00 USD 2 A newspaper shows the following prices for the previous days CME trading in USD EUR currency futures Month March Open 1 3324 High 1 3389 Low 1 3299 Settlement 1 3336 Change 0012 Lifetime High 1 4147 Lifetime Low 1 3098 Open Interest 111,360 a What do the above terms indicate b What is the USD value for this contract Show your calculations c If your initial margin account required a deposit of USD3000, what would be the current value of your account if you had shorted one EUR futures contract at the lifetime high

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Question: 1. You write a put option on JPY with a strike price of USD0.008/JPY (JPY125.00/USD) at a premium of USD0.008 per JPY and with an

1. You write a put option on JPY with a strike price of USD0.008/JPY (JPY125.00/USD) at a premium of USD0.008 per JPY and with an expiration date six months from now. The option is for JPY12,500,000. What is your profit or loss at maturity if the ending spot rates are;

a. JPY110.00/USD

b. JPY122.00/USD

c. JPY135.00/USD

d. JPY140.00/USD

2. A newspaper shows the following prices for the previous days CME trading in USD/EUR currency futures:

Month	March
Open	1.3324
High	1.3389
Low	1.3299
Settlement	1.3336
Change	+.0012
Lifetime High	1.4147
Lifetime Low	1.3098
Open Interest	111,360

a. What do the above terms indicate?

b. What is the USD value for this contract? Show your calculations.

c. If your initial margin account required a deposit of USD3000, what would be the current value of your account if you had shorted one EUR futures contract at the lifetime high?

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