(iii) if you are a us investor buying currency call option to buy EUR against US, is it true that you are indirectly buying currency put option contract for US. If it is, how does it work?

(iv) A put currency option contract, maturing in May, selling at a GBP at 1.50USD with premium of $0.02. If the market price on expiration day is $1.40 per GBP.

a- Determine whether put option buyer will exercise this contract? Using the diagram show the break-even spot price for this contract?

b- If you are holding large amount of GBP, but you are not sure the direction of the exchange movement of GBP against US, what sort of contract will you be buying?