Problem $1.$British Pound Futures, U$.$S$.$$$/$pound $($CME$)$OptionPut on Sing $ Call on Sing $Strike Price$$0\mathrm{.}6500/$S$ $$0\mathrm{.}6500/$S$Premium$$0\mathrm{.}00003/$S$ $$0\mathrm{.}00046/$S$ MaturityMarch JuneOpen$1\mathrm{.}42461\mathrm{.}4164$High$1\mathrm{.}42681\mathrm{.}4188$Low$1\mathrm{.}42141\mathrm{.}4146$Settle$1\mathrm{.}42281\mathrm{.}4162$Change$0\mathrm{.}00320\mathrm{.}0030$High$1\mathrm{.}47001\mathrm{.}4550$Interest$25,605809$a$.$ Should Cece buy a put on Singapore dollars or a call on Singapore dollars?b$.$ What is Ceces break$-$even price on the option pur$-$ chased in part $($a$)?$c$.$ Using your answer from part $($a$),$ what is Ceces gross profit and net profit $($including premium$)$ if the spot rate at the end of $90$ days is indeed $$0\mathrm{.}7000/$S$$?$d$.$ Using your answer from part $($a$),$ what is Ceces gross profit and net profit $($including premium$)$ if the spot rate at the end of $90$ days is $$0\mathrm{.}8000/$S$$?4.$ Kapinsky Capital Geneva $($A$).$ Christoph Hoffeman trades currency for Kapinsky Capital of Geneva. Christoph has $$10$ million to begin with, and he must state all profits at the end of any speculation in U$.$S$.$ dollars. The spot rate on the euro is $$1\mathrm{.}3358/,$ while the $30-$day forward rate is $$1\mathrm{.}3350/.$a$.$ If Christoph believes the euro will continue to rise in value against the U$.$S$.$ dollar, so that he expects the spot rate to be $$1\mathrm{.}3600/$ at the end of $30$ days, what should he do$?$b$.$ If Christoph believes the euro will depreciate in value against the U$.$S$.$ dollar, so that he expects the spot rate to be $$1\mathrm{.}2800/$ at the end of $30$ days, what should he do$?5.$ Kapinsky Capital Geneva $($B$).$ Christoph Hoffeman of Kapinsky Capital now believes the Swiss franc will appreciate versus the U$.$S$.$ dollar in the coming $3-$month period. He has $$100,000$ to invest. The cur$-$ rent spot rate is $$0\mathrm{.}5820/$SF$,$ the $3-$month forward rate is $$0\mathrm{.}5640/$SF$,$ and he expects the spot rates to reach $$0\mathrm{.}6250/$SF in three months.a$.$ Calculate Christophs expected profit assuming a pure spot market speculation strategy.b$.$ Calculate Christophs expected profit assuming he buys or sells SF three months forward.Contract $=62,500$ pounds Open