Problem $7\mathrm{.}9$

Assume a call option contract on Australian dollars is available with an exercise price of $$0\mathrm{.}75$ per australian dollars and a contract size of AUD$10,000.$ This is a European option, and the premium is $$0\mathrm{.}05$ per australian dollars.

Required:

a$.$ If you take a long position on this contract, at what future spot exchange rate at maturity will you maximize your profit? What is the amount of the maximum possible profit from one contract?

b$.$ What is the maximum possible loss for a buyer of this call option?

c$.$ What is the maximum possible profit from this contract to a call option writer?

d$.$ What is the maximum possible loss for a call writer?

e$.$ At what future spot exchange rate, will the call buyer and writer break even?