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( Mini - case ) A speculator is considering the purchase of 5 three - month Japanese yen PUT options with a striking price of

(Mini-case) A speculator is considering the purchase of 5 three-month Japanese yen PUT options with a striking price of 96 cents ( $0.96) per 100 yen. The premium is 1.4 cents per 100 yen. The spot price is 97 cents per 100 yen and the 90-day forward rate is 95.71 cents per 100 yen. The speculator believes the exchange rate will be 91 cents per 100 yen over the next three months. (Note the size of one yen contract is 1,000,000). As the speculator's assistant, determine the speculator's profit if the exchange rate is indeed 91 cents per 100 yen (Please keep one decimal, eg.,1,500.4. There is no need to use currency symbol in this question since your balance is measured in US $).
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