Explanations please

Problem 7.12 Contrarious Calandra 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 (C$) will appreciate versus the U.S. dollar over the coming 90 days. The current spot rate is $0.6750/CS. Calandra may choose between the following options on the Canadian dollar: Option Put on CS Call on C$ Strike Price $0.7000 $0.7000 Premium S0.00003/SS $0.00049/S$ a. Should Calandra buy a put on Canadian dollars or a call on Canadian dollars? b. What is Calandra's breakeven 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 $0.7600? 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 $0.8250? Assumptions Current spot rate (USS/Canadian dollar) Days to maturity Values $0.6750 90 Call option Option choices on the Canadian dollar: Strike price (US$/Canadian dollar) Premium (USS/Canadian dollar) $0.7000 S0.00049 Put option $0.7000 S0.0003 a) Which option should Giri buy? Since Giri expects the Canadian dollar to appreciate versus the US dollar, he should buy a call on Canadian dollars. b) What is Giri's breakeven price on the option purchased in part a)? Strike price Plus premium Breakeven $0.7000 0.00049 $0.7005 c) What is Giri's gross profit and net profit (including premium) if he ending spot rate is $0.7600/CS? Spot rate Less strike price Less premium Profit Gross profit (USS/CS) S0.7600 (0.7000) Net profit (US$/CS) $0.7600 (0.7000) (0.00049) $0.05951 $0.0600 d) What is Giri's gross profit and net profit (including premium) if the ending spot rate is $0.8250/CS? Spot rate Less strike price Less premium Profit Gross profit (USS/CS) $0.8250 (0.7000) Net profit (US$/CS) $0.8250 (0.7000) (0.00049) S0.12451 S0.1250