Cachita Haynes. 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 $119\mathrm{.}00=$$$1\mathrm{.}00.$ She must choose between the following $90-$day options on the Japanese yen: $.$

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\mathrm{.}00=$$$1\mathrm{.}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$).$

B$.$ Cachita should buy a call on yen to profit from the fall of the dollar $($the rise of the yen$).$

C$.$ Cachita should buy a call on yen to profit from the rise of the dollar $($the fall of the yen$).$

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 $ per $.($Round to five decimal places.$)$

Data table

$($Click on the following icon $$ in order to copy its contents into a spreadsheet$\_)$

$\backslash$table$[[$Option$,$Strike Price,Premium$],[$Put on yen,$126=$$$1\mathrm{.}00,$$$0\mathrm{.}00003$ per $$