Calandra Panagakos at CIBC. Calandra Panagakos works for CIBC Currency Funds in Toronto. Calandra is something...

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Calandra Panagakos at CIBC. Calandra Panagakos works for CIBC Currency Funds in Toronto. Calandra is something of a contrarian-as opposed to most of the forecasts, she believes the Canadian dollar (CAD) will appreciate versus the U.S. dollar (USD) over the coming 90 days. The current spot rate is USD0.6753 = CAD1.00. Calandra may choose between the following options on the Canadian dollar: a. Should Calandra buy a put on Canadian dollars or a call on Canadian dollars? b. What is Calandra's break-even price on the option purchased in part (a)? c. Using your answer from part (a), what is Calandra's gross profit and net profit (including premium) if the spot rate at the end of 90 days is indeed USD0.7603? d. Using your answer from part (a), what is Calandra's gross profit and net profit (including premium) if the spot rate at the end of 90 days is USD0.8248? a. Should Calandra buy a put on Canadian dollars or a call on Canadian dollars? (Select the best choice below.) OA. Since Calandra expects the Canadian dollar to appreciate versus the US dollar, she should buy a put on Canadian dollars. OB. Since Calandra expects the Canadian dollar to depreciate versus the US dollar, she should buy a put on Canadian dollars. OC. Since Calandra expects the Canadian dollar to depreciate versus the US dollar, she should buy a call on Canadian dollars. D. Since Calandra expects the Canadian dollar to appreciate versus the US dollar, she should buy a call on Canadian dollars. b. What is Calandra's break-even price on the option purchased in part (a)? Calandra's breakeven price on the option is USD/CAD. (Round to five decimal places.) c. Using your answer from part (a), what is Calandra's gross profit and net profit (including premium) if the spot rate at the end of 90 days is indeed USD0.7603? Calandra's gross profit, if the spot rate at the end of 90 days is indeed USD0.7603/CAD, is USD/CAD. (Round to five decimal places.) Calandra's net profit (including premium), if the spot rate at the end of 90 days is indeed USD0.7603/CAD, is USD/CAD. (Round to five decimal places.) d. Using your answer from part (a), what is Calandra's gross profit and net profit (including premium) if the spot rate at the end of 90 days is USD0.8248? Calandra's gross profit, if the spot rate at the end of 90 days is USD0.8248/CAD, is USD/CAD. (Round to five decimal places.) Calandra's net profit (including premium), if the spot rate at the end of 90 days is USD0.8248/CAD, is USD/CAD. (Round to five decimal places.) Data table Strike Price USD0.7002 = CAD1.00 USD0.7002 = CAD1.00 (Click on the following icon in order to copy its contents into a spreadsheet.) Option Put on CAD Call on CAD Premium USD0.00002 per CAD USD0.00045 per CAD Print Done - X Calandra Panagakos at CIBC. Calandra Panagakos works for CIBC Currency Funds in Toronto. Calandra is something of a contrarian-as opposed to most of the forecasts, she believes the Canadian dollar (CAD) will appreciate versus the U.S. dollar (USD) over the coming 90 days. The current spot rate is USD0.6753 = CAD1.00. Calandra may choose between the following options on the Canadian dollar: a. Should Calandra buy a put on Canadian dollars or a call on Canadian dollars? b. What is Calandra's break-even price on the option purchased in part (a)? c. Using your answer from part (a), what is Calandra's gross profit and net profit (including premium) if the spot rate at the end of 90 days is indeed USD0.7603? d. Using your answer from part (a), what is Calandra's gross profit and net profit (including premium) if the spot rate at the end of 90 days is USD0.8248? a. Should Calandra buy a put on Canadian dollars or a call on Canadian dollars? (Select the best choice below.) OA. Since Calandra expects the Canadian dollar to appreciate versus the US dollar, she should buy a put on Canadian dollars. OB. Since Calandra expects the Canadian dollar to depreciate versus the US dollar, she should buy a put on Canadian dollars. OC. Since Calandra expects the Canadian dollar to depreciate versus the US dollar, she should buy a call on Canadian dollars. D. Since Calandra expects the Canadian dollar to appreciate versus the US dollar, she should buy a call on Canadian dollars. b. What is Calandra's break-even price on the option purchased in part (a)? Calandra's breakeven price on the option is USD/CAD. (Round to five decimal places.) c. Using your answer from part (a), what is Calandra's gross profit and net profit (including premium) if the spot rate at the end of 90 days is indeed USD0.7603? Calandra's gross profit, if the spot rate at the end of 90 days is indeed USD0.7603/CAD, is USD/CAD. (Round to five decimal places.) Calandra's net profit (including premium), if the spot rate at the end of 90 days is indeed USD0.7603/CAD, is USD/CAD. (Round to five decimal places.) d. Using your answer from part (a), what is Calandra's gross profit and net profit (including premium) if the spot rate at the end of 90 days is USD0.8248? Calandra's gross profit, if the spot rate at the end of 90 days is USD0.8248/CAD, is USD/CAD. (Round to five decimal places.) Calandra's net profit (including premium), if the spot rate at the end of 90 days is USD0.8248/CAD, is USD/CAD. (Round to five decimal places.) Data table Strike Price USD0.7002 = CAD1.00 USD0.7002 = CAD1.00 (Click on the following icon in order to copy its contents into a spreadsheet.) Option Put on CAD Call on CAD Premium USD0.00002 per CAD USD0.00045 per CAD Print Done - X