d) All of the above. d 7%, 18) Th while the direct s would interest rate parity hold? e 90day interest rates (annualized) in the US and Japan are, respectively, 10% an irect spot quote for the yen in New York is s.004300. At what 9Oday forward rate 004430 l. b. 004271 c. 004332 d. 004176 19-Th $1,562.50. Since the option will not be e premium of the option is $.05 x (31,250 units) net profit is -$1,562.50. 18. Assume that a speculator purchases a put option or British pounds (with a strike price of $1.50) for $.05 per unit. A pound option represents 31,250 nits. Assume that at the time of the purchase, the spot rate of the pound is $1.51 and continually rises to $1.62 by the expiration date. The highest net profit possible for the speculator based on the information above is: a. $1,562.50. b. -$1,562.50 c. -$1,250.00. d.-$625.00