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and this is the table (Click on the icon to import the table into a spreadsheet.) 2 Option Put on yen Call on yen Strike

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(Click on the icon to import the table into a spreadsheet.) 2 Option Put on yen Call on yen Strike Price 126/$ 126/$ Premium $0.0000314 $0.00046/ Print Done Vatic Capital. Cachita Haynes works as a currency speculator for Vatic Capital of Los Angeles. Her latest speculative position is to profit from her expectation that the U.S. dollar will rise significantly against the Japanese yen. The current spot rate is \122.00/$. She must choose between the following 90-day options on the Japanese yen: E . a. Should Cachita buy a put on yen or a call on yen? b. What is Cachita's breakeven price on the option purchased in part a? c. Using your answer from part a, what is Cachita's gross profit and net profit (including premium) if the spot rate at the end of 90 days is 140.00/$? a. Should Cachita buy a put on yen or a call on yen? (Select the best choice below.) A. Cachita should buy a put on yen to profit from the rise of the dollar (the fall of the yen). O B. Cachita should buy a call on yen to profit from the rise of the dollar (the fall of the yen). O C. Cachita should buy a call on yen to profit from the fall of the dollar (the rise of the yen). O D. Cachita should buy a put on yen to profit from the fall of the dollar (the rise of the yen). b. What is Cachita's breakeven price on the option purchased in part a? Cachita's breakeven price on her option choice is $14. (Enter as US dollars and round to five decimal places.)

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