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A speculator is considering the puchase of 2 three - month Japanese yen PUT options with a striking price of 9 6 cents ( $

A speculator is considering the puchase of 2 three-month Japanese yen PUT options with a striking price of 96 cents ($0.96) per 100 yen. The premium is 1.13 cents per 100 yen. The spot price is 98 cents per 100 yen and 90-day fowward rate is 95.71 cents per 100 yen. The speculator believes the yen will be 87 cents per 100 yen over the next three months. (Note the size of one yen contract is 1,000,000 yen). As the speculators' assisitant, determine the speculator's profit if the exchange rate is indeed 87 cents per 100 yen.

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