1. (4 pts) Auburn Co purchased Canadian dollar put options for speculative purposes. Each option was purchased for a premium of US$0.03 per unit, with an exercise price of US$0.86/1CAD. Auburn will purchase the Canadian dollars just before it exercises the options (if it is feasible to exercise the options). It plans to wait until the expiration date before deciding whether to exercise the options. In the following table, fill in the net profit (or loss) per unit to Auburn Co based on the listed possible spot rates (direct quote) of the Canadian dollar on the expiration date

Possible spot rate of CAD on expiration date Net Profit (Loss) per unit

US$0.76/1CAD

US$0.79/1CAD

US$0.84/1CAD

US$0.87/1CAD

US$0.89/1CAD

US$0.91/1CAD