7. Andrea C ujoli is a currency speculator who enjoys "betting" on changes in the foreign currency exchange market. Currently the spot price for theJapanese yen is 129.875 and the 6-month forward rate is 128.53 S Andrea thinks the yen wil move to 128.00 S in the rea's expecaions are correct,then she could profit in the forward market by A) buying yen for 128.00/$, selling yen at 128.53/S B) buying yen for 128.53/S; selling yen at 128.00/S C) There is not enough information to answer this question D) She could not profit in the forward market. and then . ca oon on UK pounds has a strike price of $2.05/E and a cost of $0.02. What is the break-even price for the option? A) $2.03/E B) $2.07/ C) $2.05/f D) The answer depends upon if this is a long or a short call option. Use the Table given below to answer following question(s). April 19, 2009, British Pound Option Prices (cents per pound, 62,500 pound contracts) Option & Underlyin Puts-Last Strike Price 40 1450 Ma 0.881.421.42 0.42 1.02 1.06- 1448 0.72 2.32 1448 9) Refer to the Table above. The exercise price of pounds in June has a cost per pound of for a A) 1460; 0.68 cents; $425.00. B) 1440; 1.06 cents; $662.50 C) 1450: 1.02 cents; $637.50. D) 1440; 1.42 cents; $887.50. 10) Refer to the Table above. The May call option on pounds with a strike price of 1440 means 1460 0.20 giving the purchaser the right to sell total price of A) $88/f per contract. B) S0.88/. C) $0.0088/E. D) none of the above 11) Peter Simpson thinks that the U.K. pound will cost $1.43/f in six months. A 6-month currency futures contract is available today at a rate of $1.44/E. If Peter was to speculate in the currency futures market, and his expectations are correct, which of the following strategies would earn him a profit? A) Sell a pound currency futures contract. B) Buy a pound currency futures contract C) Sell pounds today D) Sell pounds in six months