An Investor is bullish on the euro and believes it will increase against the Japanese Yen The investor purchases a currency call option on the euro with a strike price (exchange rate) of 125/6. When the investor purchases the contract, the spot rate of the euro is equivalent to M125/6. Assume the euro's spot price at the expiration date (market price) is M135/ the premium is 23/ a) Assume the euro's spot price at the expiration date market price) is #135/ The investor's profit ME b) Assume the euro's spot price at the expiration date (market price) is 12016 The Investor's profit WE c) What is the maximum loss Maximum loss WIE An investor is bearish on the euro and believes it will decrease against the Japanese Yen. The investor purchases a currency put option on the euro with a strike price (exchange rate) of 134/. When the investor purchases the contract, the spot rate of the euro is equivalent to 132/, the premium is 2/6 a) Assume the euro's spot price at the expiration date market price) is #124 The Investor's profit=1 / b) Assume the euro's spot price at the expiration date market price) is 4138/ The Investor's profit c) What is the maximum loss Maximum loss V/E d) What the maximum profit Maximum profit=1 WE Jasper Pernik is o currency speculator who enjoys betting on changes in the foreign currency exchange market Currently the spot price for the Japanese yen is 130/5 and the 6-month forward rate is 128/5. Jasper thinks the yen will move to 130/$ in the next six months. I Jasper buys $91000 worth of yen at today's spot price and sells within the next six months of 130/5, he will corn a profit of os Profit