I would like to inform you that you are requested to see the following attachment below and prepare the answer as per instruction. Reference book jef Madhura 11th edition chapter 16 and chapter 5(Exercise)

2. Currency Call Options Use the following information to determine the probability distribution of net gains per unit from purchasing a call option on British pounds. Spot rate of the British pound is $1.45. Premium on the British pound option is $0.04 per unit. Exercise price of a British pound option is $1.46. Your expectation of the British pound spot rate prior to the expiration of the option is: Possible outcome from Future spot rate $ 1.48 1.49 1.52 Probability 30% 40 30 Stock market conditions serve as a leading economic indicator. If the U.S. economy is in a recession, what are the implications of this indicator? Why might this indicator be inaccurate