a)Rixon Corporation sells CHF call options with a strike price of USD $0.92. The option premium is USD 0.02 per currency unit. A financial analyst at Rixon forecasts the following possible values for spot USD/CHF at maturity. Calculate Rixons gain or loss (per currency unit) for each for these spot values

Possible value (USD/CHF) Option exercises (Yes/No) Gain/Loss .

$0.85

$0.88

$0.91

$0.94

$0.97

b). Rider Corporation buys Euro call options with a strike price of USD$1.15. The option premium is USD 0.04 per currency unit. A financial analyst at Rider forecasts the following possible values for spot USD/EUR at maturity. Calculate Riders gain or loss (per currency unit) for each for these spot values.

Possible value (USD/EUR) Option exercises (Yes/No) Gain/Loss .

$1.11

$1.14

$1.17

$1.20

$1.23