If the VND payable is 1607709 VND and the spot rate is 716 VND / 1 THB.

The financial manager of the company has access to the following information; Call Option on VND with the strike price of 0.001397 THB / 1 VND has a premium of 2.4 % and Put Option on VND with the strike price of 0.001397 THB / 1 VND has a premium of 1.2 %.

1. What is the amount of the premium paid for the option purchased in the question above? Make sure to answer in the THB amount NOT in an exchange rate format.

2. If the spot rate in three month is 0.001276 THB / 1 VND, How much in THB the company has to pay, considering the premium paid for the option?

3. If the spot rate in three month is 0.001276 THB / 1 VND, What is the effective exchange rate in the form of THB/VND 1?

4. If the spot rate in three month is 0.001276 THB / 1 VND, What is the gross value of this option to the company as the buyer?