1. Andy Jones speculates with currency options. He currently is anticipating that the EUR will appreciate against the USD. The current spot rate is $1.1790/ and Andy believes it will be at $1.2500 in 90 days. Put and call options with 90 day maturity are available at strike prices of $1.2000/ and a premium of $.003/.
2. Should Andy buy a put or a call option?
3. If the spot rate is $1.2500/ in 90 days what will be hisnet profit or loss per ?

If the spot rate is $1.1500/ in 90 days what will be hisnetprofit or loss per ?