(5) Luke Skywalker is looking to enhance his yield via a dual currency investment. He is mainly USD based, and holds the view that USD is likely to weaken over the next 6 months. He is looking at a 3 month investment tenor and amount of USD100,000. Upon checking with his bank, he was given the following indications: 3 months Call Option (200pips away) on USDSGD 3 months Put Option (200pips away) on USDSGD 4% per annum 6% per annum Current USDSGD Rate: 1.4000 (a) Luke's view is 200pips is a decent buffer to enter into a dual currency investment, what is option's strike price. (2 marks) (b) At maturity, USDSGD is observed to be 1.3750, what current and amount will Andy receive? Please show all workings. (4 marks) (c) State and explain two (2) key risks of such an investment. (4 marks)