$3.$ Ahmet is a currency option speculator. He wants to speculate on $1,000,000$ using currency option on $.$ The current spot rate on $$/$ is $$1\mathrm{.}28/.$ Ahmet wants to buy an option on $.$ Since he expects that $$ will depreciate against $ in $3-$months. The strike $($exercise$)$ price and option premium for each option alternative is given in the table below as follows:

Option Strike Price Option premium

Call option on $$

Put option on $0\mathrm{.}7692/$ $

$0\mathrm{.}7692/$ $ $ $0\mathrm{.}02/$

$ $0\mathrm{.}015/$

Based on the information given above, answer the following questions:

a$)$ Which option $($call or put$)$ would Ahmet buy based on his expectations?

b$)$ Based on your answer in part $($a$),$ what is the break$-$even price?

c$)$ Based on your answer in part $($a$),$ calculate the total gross profit and net profit in $ for each speculator if the actual spot rate at maturity of the option becomes $$1\mathrm{.}31/.$