2. US importer agrees to pay C$50,000 to a Canadian exporter in 60 days. To reduce ER risk, the US importer purchase a European call option (a C$ 64 call option), which gives him the right to buy C$50,000 at the exercise price of $0.64/C$ in 60 days.Given the following information: Contract size: C$50,000,Exercise price (X): $0.64/C$,Option price = $0.02/C$.

1) What is the break-even value? 2) Show thePayoff profileof your call option below.

Future Spot.62.64.66.68.70

Exercise Price (X)

Opt Premium (P)

Unit Profit

Total Profit (Loss)