KT Option Strategies is evaluating 90 day maturity Aussies calls and puts. Aussies spot and forward are both priced in American terms. The option information is below. Option Put on Aussies Call on Aussies Assumptions Current spot rate (USS/Aussies) in Aussies/USS Maturity of forward and options (days) Strike Price S0.6830/A$ Premium $0.0192 $0.6830/A$ $0.0158 Values $ 0.6830 Current forward rate (USS/Aussies) $ 0.6796 in Aussies/USS Expected ending spot rate in 90 days (S/Aussies) S 0.6700 in Aussies/USS Is the call in, at, or out-of-the-money? Is the put in, at, or out-of-the-money? Given spot and forward rates what is the relation between U.S. and U.K. interest rates? Expected Ending Spot Strike price (US$/Aussies) Exercise Profit Premium (USS/Aussies) What is the total exercise profit (Less Premium) Given the market view, should the put or call be bought? Equal Call on Aussies Put on Aussies $ 0.6700 $ 0.6700