I've done the work and bolded the answers that I got. I'm just not positive in my answers and I need confirmation or corrections please.

1. Your company (US-based organization) is expected to receive 4 million British pounds in nine months. You decide to use European call options to fully hedge against your currency risk. Each call option has 500,000 pounds attached and has an exercise price and premium of $1.25/pound and $.75/pound, respectively. The spot price for pounds the day that you established your hedge was $1.2/pound.

Find your profit/loss (in dollars) from your options if the dollar/pound spot price is $1.1/pound when the options expire.

a. -$3.6 million

b. $3.6 million

c. -$3 million

d. $3 million

2. The seller of a call option has the right to buy the underlying asset at a predetermined price within a certain time interval.

a. true

b. false

3. A hedge fund manager shorted 800 shares of XYZ stock at $65/share and she plans to close out her short position in nine months. She decides to put options to fully hedge her short sale against price risk. 9-month XYZ put options have a strike price and premium of $60 and $.15, respectively. Find her total profit/loss (stock and options combined) if XYZ sells for $59 when the options expire.

a. -4120

b. 4120

c. 4920

d. -4920

4. A hedge fund manager shorted 800 shares of XYZ stock at $65/share and she plans to close out her short position in nine months. She decides to put options to fully hedge her short sale against price risk. 9-month XYZ put options have a strike price and premium of $60 and $.15, respectively. Find the manager's total profit/loss (shares and options combined) if the stock trades for $72 when the options expire. Round intermediate steps and your final answer to four decimals. Do not use currency symbols or words when entering your response.

-3880