8. Speculating with Currency Put Options. Bulldog, Inc., has sold Australian dollar put options to PQR at a premium of $.01 per unit, and an exercise price of S.76 per unit. It has forecasted the Australian dollar's lowest levels as $0.72, $0.73, S0.76, $0.78 and $0.80 over the period of concern. For put option, the holder sells therefore the writer must buy at the strike price if the option is exercised. I a) Identify the holder and writer of the option. b) Determine whether or not the option will be exercised at the predicted exchange rates.. c) Determine the net profit (or loss) per unit to both Bulldog, Inc. and PQR, if each level OCCUIS.

Speculating with Currency Put Options. Bulldog, Inc, has sold Australian dollar put options to PQR at a premium of $.01 per unit, and an exercise price of $.76 per unit It has forecasted the Australian dollar's lowest levels as $0.72,50.73,50.76,50.78 and $0.80 over the period of concern. For put option, the holder sells therefore the writer must buy at the strike price if the option is exercised a) Identify the holder and writer of the option b) Determine whether or not the option will be exercised at the predicted exchange rates c) Determine the net profit (or lo55) per unit to both Bulldog. Inc, and PQR, if each level occurs