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a. Should Cece buy a put on Singapore dollars or a call on Singapore dollars? (Select the best choice below.) A. Since Cece expects the
a. Should Cece buy a put on Singapore dollars or a call on Singapore dollars? (Select the best choice below.) A. Since Cece expects the Singapore dollar to appreciate versus the U.S. dollar, she should buy a call on Singapore dollars. This gives her the right to buy Singapore dollars at a future date at $0.7000/S$ each, and then immediately resell them in the open market at $0.6500/S$ each for a profit. (If her expectation of the future spot rate proves correct.) B. Since Cece expects the Singapore dollar to appreciate versus the U.S. dollar, she should buy a call on Singapore dollars. This gives her the right to buy Singapore dollars at a future date at $0.6500/S$ each, and then immediately resell them in the open market at $0.7000/S$ each for a profit. (If her expectation of the future spot rate proves correct.) C. Since Cece expects the Singapore dollar to appreciate versus the U.S. dollar, she should buy a put on Singapore dollars. This gives her the right to buy Singapore dollars at a future date at $0.6500/S$ each, and then immediately resell them in the open market at $0.7000/S$ each for a profit. (If her expectation of the future spot rate proves correct.) D. Since Cece expects the Singapore dollar to appreciate versus the U.S. dollar, she should buy a call on Singapore dollars. This gives her the right to sell Singapore dollars at a future date at $0.6500/S$ each, and then immediately rebuy them in the open market at $0.7000/S$ each for a profit. (If her expectation of the future spot rate proves correct.) b. Cece's breakeven price is $ IS $. (Round to five decimal places.) \begin{tabular}{lcc} Option & Strike Price & Premium \\ \hline Put (US\$/Singapore dollar) & 0.6500 & 0.00003 \\ Call (US\$/Singapore dollar) & 0.6500 & 0.00046 \\ \hline \end{tabular}
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