Question: Katya Berezovsky expects that the U . S . dollar will rise significantly against the Japanese yen. She expects the spot rate to be 1

Katya Berezovsky expects that the U.S. dollar will rise significantly against the Japanese yen. She expects the spot rate to be 140.00/$ in 90 days. The current spot rate is 120.00/$. She must choose between the following 90-day options on the Japanese yen: Call on yen (strike price =129.00/$; premium $0.00046/) and Put on yen (strike price =129.00/$; premium $0.00003/). What is her correct position and break-even price?
Group of answer choices
buy call; break even $0.00846/
buy put; break even $0.00797/
buy call; break even $0.00797/
buy put; break even $0.00772/
buy put; break even $0.00846/

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