Question: (Click on the icon to import the table into a spreadsheet.) Option Put on yen Call on yen Strike Price 124/$ 124/$ Premium $0.00003/ $0.00046/4


(Click on the icon to import the table into a spreadsheet.) Option Put on yen Call on yen Strike Price 124/$ 124/$ Premium $0.00003/ $0.00046/4 Vatie Capital Cachita Haynes works as a currency speculator for Vatic. Capital of Los Angeles Hur latest speculative position is to profit from her expectation that the US dollar will rise significantly against the Japanese yen The current spot rate is 122.00/5 she must choose between the following 90-day options on the Japanese yen a. Should Cachita buy a put on yen ora calon yen? b. What is Cachita's breakeven price on the option purchased in parte? c. thing your answer trom parta, what is Cachita's grow profit and not proft (including premium) the spot rate at the end of 90 days is 140 0015? GUD . Should Cachito buy a put on yen or a cat on yen? (Select the best choice below) O Cacho should buy put on yen to proft from the to the dollar (the rise of the yen) On Cach should buy a calon yen to protrom the rest of the dollar (the fall of the yon) Cachita should buy a put on yon to profit from the be of the dollar the fall of the yen) Cachia should buy a calon yen to profit from the fall of the dollar (there of the yen) b. What is Cachha's breakeven price on the option purchased in parta? Cachita's breakeven price on her option choice in (Enter as US dollars and round to five decimal places)
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