Assume that Jones Co. has a payable of 100,000 Singapore dollars (S$) in 180 days. Today's spot rate of the S$ is $.50, and the 180-day forward rate is $.53. A call option on S$ exists, with an exercise price of $.52, a premium of $.02, and a 180-day expiration date. A put option on S$ exists, with an exercise price of $.51, a premium of $.04, and a 180-day expiration date. Jones has developed the following probability distribution for the spot rate in 180 days:

Possible Spot Rate
in 180 Days	Probability
$.48	10%
$.53	60%
$.55	30%