(4 Points) The U.S. six - month i nterest rate ( unannualized ) is 2.8 5 %. The Denmark six - month inte rest rate (unannualized) is 1 . 2 0 %. There are six - month European call options and put options available for Danish krone (DKK ) . Both options have the same premium of $ 0.0003 /DKK and a strike price of $ 0. 1425 /DKK . The spot rate of the Danish krone (DKK ) is $ 0 . 14 00 /DKK . Assume that you believe in International Fisher Effect (IFE) . a. Forecast the dollar amount of your profit or loss from buyin g a 6 - mo nth European put option contract specifyi ng DKK 1 ,0 00,000. R ound the inter mediate calculations to 4 decimal p la ces and final answer to 2 decimal places . (2 points) b. Forecast the USD paid b y A&M company which uses the call option to hedge against its 6 month pay ables of DKK 1 , 0 00,000. Round the intermediate calculations to 4 decima l places and f inal answer to 2 decimal places. (2 points) ANS: Please label a/b in your res