1. After successfully completing your undergraduate degree in International Finance you feel confident that you can make money using options, specifically by WRITING an option. You have been tracking the Turkish Lira (TRY) for some time and believe that the fundamentals underlying the long term fall in the Lira have not changed and you expect the Lira to continue to fall in the future. You therefore wish to use options for this strategy. You believe the Turkish Lira (TRY) will depreciate versus the U.S. dollar (USD) over the coming 90 days to $0.059/TRY. The current spot rate is $0.064/TRY i.e. 1 Turkish Lira is buying $0.064 USD. You can choose between the following options on the Turkish Lira i.e. either write a PUT or write a CALL:

Option	Strike price	Premium
Put on TRY	$0.064/TRY	$0.0010/TRY
Call on TRY	$0.064/TRY	$0.0050/TRY

1. Should you WRITE a put on Turkish Lira or WRITE a call on Turkish Lira? Justify your answer in no more than 1-2 sentences.
2. Using your answer to part a), what is the break-even price?
3. Using your answer to part a), what would be your net profit if the spot rate at the end of the 90 days has indeed depreciated to $0.059/TRY. Assume a contract size of TRY 400,000.