A speculator is considering the purchase of two three-month sterling call options at a surprising price of $1.59 per £. The premium is $0.03 per pound. The standard size of each option. contract is £10,000.

(a) Determine the future spot price at which the speculator will only break even
(b) What would be the speculator's profit if the pound depreciated to $1.57 per pound?
(Include the currency symbols $, £ in your answer)