Apex Corporation must pay its Japanese supplier 125 million in three months. It is thinking of buying 20 yen call options (contract size is 6.25 million) at a strike price of $0.00800 in order to protect against the risk of a rising yen. The premium is 0.015 cents per yen. Alternatively, Apex could buy 10 three month yen futures contracts (contract size is 12.5 million) at a price of $0.007940 per yen. The current spot rate is 1 = $0.007823. Suppose Apex's treasurer believes that the most likely value for the yen in 90 days is $0.007900, but the yen could go as high as $0.008400 or as low as $0.007500. A Diagram Apex's gains and losses on the call option position and the futures position within its range of expected prices. Ignore transaction costs and margins. (7 marks) B Calculate what Apex would gain or lose on the option and futures positions if the yen settled at its most likely value. (4 marks) C What is Apex's break even future spot price on the option contract? On the futures contract? (3 marks) D Calculate and diagram the corresponding profit and loss and break even positions on the futures and options contracts for the sellers of these contracts.