(a) A call option allows the holder to buy USD 100 000 at an exercise exchange rate of 1.8000 (AUD/USD). If the premium paid is 0.5 Australian cents per USD, calculate the net payoff at the following spot exchange rates: i. 1.8040 AUD/USD ii. iii. 1.8260 AUD/USD 1.7870 AUD/USD iv. At what exchange rate will the holder break even? (4) (b) A put option allows the holder to sell NOK250 000 at an exercise exchange rate of 0.190 (AUD/NOK). If the premium paid is 0.4 Australian cents per NOK, calculate the net payoff at the following spot exchange rates: i. 0.200 AUD/NOK ii. 0.192 AUD/NOK iii. 0.180 AUD/NOK iv. At what exchange rate will the holder break even