International Finance

Tell me the answer asap! I'm in a hurry, I'll finish it in half an hour! please. thanks

1. Maream purchased a put option on EUR for USD 0.012 per unit from Christopher. The strike price was USD1.1365/EUR and the spot rate at that time the option was exercised was USD1.1252/EUR. Assume there are 125,000 units in a Euro option. If Maream exercise the option, calculate Christopers net profit/loss in USD for this option.

(4 marks)

2. You are given the following information

	Quoted Price
ANZB Bank	NZD 1.8485/CND
Nova Scotia Bank	USD 0.8000/CND
Merill Bank	USD 0.4425/NZD

Compute the profit (one way only) from this strategy if you had USD1,000,000 to use.

(8 marks)