John is a US based Forex trader. He focuses principally on the Singapore dollar/US dollar (S$/$) cross-rate. The current spot rate is S$1.40/$. After considerable study, he concludes that the exchange rate, in the coming 180 days, will probably be about S$1.34/$. He has the following options on the Singapore dollar to choose from:

Option

Strike Price

Premium

Put on S$

S$1.3600/$

$0.003/S$

Call on S$

S$1.3600/$

$0.004/S$

Discuss whether he should buy a Put on S$ or Call on S$, and what would be his net profit if the spot rate at the end of the 180 days is indeed S$1.34/$.