1. Please form a strategy to profit from your expectations using a combination of NTD currency options for the following scenarios (assuming USD is the home currency):

The U.S. market participants forecast that Taiwans economy will remain strong, and capital will keep flowing into the market next year. Also, they have concerns that Fed may raise the interest rate unexpectedly in the next year too.

a. Your expectations align with the market that the exchange rate of NTD/USD could have extreme movements.

b. Your expectations are against the market that the Taiwanese central bank would definitely intervene and stabilize the exchange rate).