Calandra Panagakos works for CIBC Currency Funds in Toronto.

Calandra Panagakos at CIBC. Calandra Panagakos works for CIBC Currency Funds in Toronto. Calandra is something of a contrarian-as opposed to most of the forecasts, she believes the Canadian dollar (CAD) will appreciate versus the U.S. dollar (USD) over the coming 90 days. The current spot rate is USD0.6748 = CAD1.00. Calandra may choose between the following options on the Canadian dollar: a. Should Calandra buy a put on Canadian dollars or a call on Canadian dollars? b. What is Calandra's break-even price on the option purchased in part (a)? c. Using your answer from part (a), what is Calandra's gross profit and net profit (including premium) if the spot rate at the end of 90 days is indeed USD0.7602? d. Using your answer from part (a), what is Calandra's gross profit and net profit (including premium) if the spot rate at the end of 90 days is USD0.8247? Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Calandra Panagakos at CIBC. Calandra Panagakos works for CIBC Currency Funds in Toronto. Calandra is something of a contrarian-as opposed to most of the forecasts, she believes the Canadian dollar (CAD) will appreciate versus the U.S. dollar (USD) over the coming 90 days. The current spot rate is USD0.6748 = CAD1.00. Calandra may choose between the following options on the Canadian dollar: a. Should Calandra buy a put on Canadian dollars or a call on Canadian dollars? b. What is Calandra's break-even price on the option purchased in part (a)? c. Using your answer from part (a), what is Calandra's gross profit and net profit (including premium) if the spot rate at the end of 90 days is indeed USD0.7602? d. Using your answer from part (a), what is Calandra's gross profit and net profit (including premium) if the spot rate at the end of 90 days is USD0.8247? Data table (Click on the following icon in order to copy its contents into a spreadsheet.)