d) All of the above. d 7%. 1 8) The 90day interest rates (annualized) in the U.S and Japan are, respectively, 10% an e the direct spot quote for the yen in New York is s.004300. At what 90day forward rate would interest rate parity hold? a. .004430 b. 004271 004332 d. 004176 19-The premium of the option is S.05 x (31,250 units) - $1,562.50. Since the option will not be ed, the net profit is-$1,562.50. 18. Assume that a speculator purchases a put option on British pounds (with a strike price of $1.50) for $.05 per unit units. Assume that at the time of the purchase, the spot rate of the pound is $1.51 and rises to $1.62 by the expiration date. The highest net profit possible for the speculator based on . A pound option represents 31,250 continually the information above is: a. $1,562.50. b. -S1,562.50 c. -$1,250.00 d. -$625.00