can someone explain how we get the answers for these?

You are US company, 500,000 BP (British Pound) payable to UK in one year. Answer in terms of US\$. Information for Forward Contract: Forward exchange rate (one yr): 1.54$/BP Information for Money Market Instruments (MMI): Current exchange rate: 1.50 \$/BP Investment return at Aerion Fund Management (in UK): 4% annual Interest rate of borrowing from Bank of America (in USA): 2% annual Information you need for Currency Options Contract: Options premium: 0.015$/BP Interest rate of borrowing from Bank of America (USA): 2% annual Allowed to exercise options at 1.54$/BP If the break-even exchange rate for the Currency Options Contract is 1.46$/BP, and you believe the exchange rate at the time of the payment would be 1.48$/BP, should you sign the contract? Yes. No. You are US company, 500,000 BP (British Pound) payable to UK in one year. Answer in terms of US\$. Information for Forward Contract: Forward exchange rate (one yr): 1.54$/BP Information for Money Market Instruments (MMI): Current exchange rate: 1.50$/BP Investment return at Aerion Fund Management (in UK): 4% annual Interest rate of borrowing from Bank of America (in USA): 2% annual Information you need for Currency Options Contract: Options premium: 0.015$/BP Interest rate of borrowing from Bank of America (USA): 2% annual Allowed to exercise options at 1.54$/BP Let's suppose you signed the Currency Options Contract. The actual exchange rate at the time of the payment is 1.56$/BP. What would you do? Exercise the option and take 1.54$/BP. Do not exercise the option and take the actual exchange rate of 1.56$/BP