2. (4 Points) The U.S. six-month interest rate (unannualized) is 3.5%. The Sri Lanka six-month interest rate (unannualized) is 7.25%. There are six-month call options and put options available for Sri Lankan Rupee (LKR). Both options have the same premium of $0.0005/LKR and a strike price of $0.0025/LKR. The spot rate of the Sri Lankan Rupee (LKR) is $0.0027 /LKR. Assume that you believe in International Fisher Effect (IFE). a. Forecast the dollar amount of your profit or loss from buying a put option contract specifying LKR10,000,000. Round the intermediate calculations to 4 decimal places and final answer to 2 decimal places. ( 2 points) b. Forecast the USD paid by A\&M company which uses the call option to hedge against its 6 month payables of LKR10,00,000. Round the intermediate calculations to 4 decimal places and final answer to 2 decimal places. (2 points) ANS: Please label a /b in your response to the two sub-questions respectively