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4. Sallie Schnudel. Sallie Schnuder Keystone Funds in Jakarta. She focuses nearly all of her time and attention on the U.S. dollar/Singapore dollar ($/S$) cross-rate.
4. Sallie Schnudel. Sallie Schnuder Keystone Funds in Jakarta. She focuses nearly all of her time and attention on the U.S. dollar/Singapore dollar (\$/S\$) cross-rate. The current spot rate is $0.6000/ S $. After considerable study, she has concluded that the Singapore dollar will appreciate versus the U.S. dollar in the coming 90 days, probably to about $0.7000/S$. She has the following options on the cinaanore dollar to choose from: a. Should Sallie buy a put on Singapore dollars or a call on Singapore dollars? b. What is Sallie's break-even price on the option purchased in part (a) ? c. Using your answer from part (a), what is Sallie's gross profit and net profit (including premium) if the spot rate at the end of 90 days is indeed $0.7000/$? d. Using your answer from part (a), what is Sallie's gross profit and net profit (including premium) if
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