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(Mini-case) A speculator is considering the purchase of five three-month Japanese yen call options with a striking price of 96 cents ($0.96) per 100 yen.

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(Mini-case) A speculator is considering the purchase of five three-month Japanese yen call options with a striking price of 96 cents ($0.96) per 100 yen. The premium is 1.16 cents per 100 yen. The spot price is 95 cents per 100 yen and the 90-day forward rate is 95.71 cents. The speculator believes the yen will appreciate to 106 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 yen appreciates to 106 cents per 100 yen

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