Multi C www.chegg.co omework-help/Multinational-Bu ness-Finance-14th-edition-chapter-7-problem-3P-solution-978013387987 2 Search Q O E Chegg Study TEXTBOOK SOLUTIONS EXPERT Q&A Bookmark Show all steps: a ON Chapter 7, Problem 3P Chapter 7 Cece Cao in Jakarta. Cece Cao trades currencies for Sumatra Funds in Jakarta. She focuses nearly all of her time and attention on the US. dollar/Singapore dollar ($/S$) cross-rate. The current spot rate is $0.6000S$.After considerable study, she has concluded that the Singapore dollar will appreciate versus the US. dollar in the coming 30 days. probably to about $0.7000/S$. She has the following options on the Singapore dollar to choose from Option Strike Price Premium Put on Sing $0.6500/S$ $0.00003/S$ 2E Call on Sing $0.6500/S$ $0.00046/S$ a. Should Cece buy a put on Singapore dollars or a call on Singapore dollars? E b. What is Cece's break even price on the option purchased in part (a)? c. Using your answer from part (a). what is Cece's gross profit and net profit (including 4IE premium) the spot rate atthe end of 90 days is Indeed$0.7000/S$? d. Using your answer from part (a). What is Cece's gross pront and net profit (including premium) if the spot rate at the end of 90 days is $0.8000/s$? SIE