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A speculator expects the Canadian dollar to reach $1.0700 in June next year. If the following two options contracts are available today for June: ---

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A speculator expects the Canadian dollar to reach $1.0700 in June next year. If the following two options contracts are available today for June: --- a call option with a strike price of $1.0450/C$ with a premium of $0.0192/C$ ---a put option with a strike price of $1.0400/C$ with a premium of $0.0146/C$ Which one should he buy if he's a rational investor? And why? Oput; he expects to have a loss of the premium. O put; he expects to earn a profit of $0.0154/C$. call; he expects to have a loss of the premium. call: he expects to earn a profit of $0.0058/C$

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