Consider a call and a put option on the Australian dollar. The call gives the trader a right to buy million at an exercise exchange rate of 0.60 (USD/AUD), while the put gives the right to sell AUDI million at the same exchange exercise rate. Suppose the trader pays USDO.02 and USD0.03 (per unit of the Australian dollar) to acquire the call and the put respectively 14. If the spot exchange rate on expiration date happens to be 0.65, then the trader of the call option will make A: a net profit of USD50,000. B: a net profit of USD30,000. C: a net profit of USD40,000. D: a net profit of USD10,000. E: a net profit of USD20,000. If the spot exchange rate on expiration date happens to be 0.65, then the trader on the put option will have A: a net loss of USD20,000. B a net loss of USD70,000. C: a net loss of USD60,000. D: a net profit of USD30,000. E: a net profit of USD20,000. If the spot exchange rate on expiration date is 0.55, them A: the gross profit on the long put will be equal to USD50,000. B: the net profit on the long put will be equal to USD30,000. C: the net loss on the short put will be equal to USD30,000. D all of the above will be true. E. only B and C will be true. 16