Mr. Brown works in CIC currency funds in USA, according to his point of view he believes that the rate in the coming 90 days will be probably $ 0.87/EUR, therefore appreciation in EUR. The current spot rate is $0.62/EUR. He has the following options on euro to choose from. Mr. Brown should: *

a. Sell a call

b. Buy a put

c. Buy a call

d. Swap

e. None of the Above

This is a required question

24. What is Mr. Brown Breakeven price on the option purchased in question 23? *

a. 0.6828

b. 0.5218

c. 0.4547

d. 0.3254

e. None of the Above

25. Refer to question 23. What is Mr. Brown gross profit and net profit if the spot rate at the end of 180 days is $ 0.88/EUR *

a. .$0.2/EUR, $0.1972/EUR

b. .$0.18/EUR, $0.1758/EUR

c.$0.25/EUR, $0.1972/EUR

d. .$0.2/EUR, $0.1875/EUR

e. None of the Above

Option Strike Price Premium $0.68/EUR $0.0032/EUR Put on euro Call on euro $0.68/EUR $0.0028 / EUR