Explanations please

Problem 7.4 Sallie Schnudel Sallie Schnudel trades currencies for Keystone Funds in Jakarta. She focuses nearly all of her time and attention on the U.S. dollar/Singapore dollar ($/S$) cross-rate. The current spot rate is $0.6000/S$. After considerable study, she has concluded that the Singapore dollar will appreciate versus the U.S. dollar in the coming 90 days, probably to about $0.7000/S$. She has the following options on the Singapore dollar to choose from: Option Put on Sing $ Call on Sing Strike Price $0.6500/SS S0.6500/SS Premium $0.00003/SS $0.00046/S$ a. Should Sallic buy a put on Singapore dollars or a call on Singapore dollars? b. What is Sallie's breakeven price on the option purchased in part (a)? c. Using your answer from part (a), what is Sallie's gross profit and net profit (including premium) if the spot rate at the end of 90 days is indeed $0.7000/SS? d. Using your answer from part (a), what is Sallie's gross profit and net profit (including premium) if the spot rate at the end of 90 days is $0.8000/SS? Option choices on the Singapore dollar: Strike price (US$/Singapore dollar) Premium (US$/Singapore dollar) Call on SS $0.6500 $0.00046 Put on SS S0.6500 $0.00003 Assumptions Current spot rate (US$/Singapore dollar) Days to maturity Expected spot rate in 90 days (USS/Singapore dollar) Values 50.6000 90 $0.7000 a. Should Sallie buy a put on Singapore dollars or a call on Singapore dollars? Since Sallie expects the Singapore dollar to appreciate versus the US dollar, she should buy a call on Singapore dollars. This gives her the right to BUY Singapore dollars at a future date at $0.65 each, and then immediately resell them in the open market at $0.70 each for a profit. (If her expectation of the future spot rate proves correct.) b. What is Sallie's breakeven price on the option purchased in part a)? Note this does not include any interest cost on the premium. Strike price Plus premium Breakeven Per SS $0.65000 $0.00046 $0.65046 c. What is Sallie's gross profit and net profit (including premium) if the ending spot rate is $0.70/S$? Spot rate Less strike price Less premium Profit Gross profit (USS/SS) S0.70000 (S0.65000) Net profit (USS/SS) $0.70000 (S0.65000) (S0.00046) $0.04954 S0.05000 d. What is Sallie's gross profit and net profit (including premium) if the ending spot rate is $0.80/S$? Spot rate Less strike price Less premium Profit Gross profit (USS/SS) S0.80000 (S0.65000) Net profit (US$/SS) $0.80000 ($0.65000) (S0.00046) $0.14954 $0.15000