Multinational Financial Management

Please show work!!

2. Options a) Suppose a call option for the value of 100,000 dinars has a premium of.05 dollars per dinar, and a strike price of .5 dollars per dinar. Illustrate the value of buying this option as a function of the future exchange rate. Label the break-even point and the point at which the buyer of this option will strike it. b) Suppose a put option for the value of 100,000 dinars has a premium of .025 dollars per dinar and a strike price of .5 dollars per dinar. Illustrate the value of buying this option as a function of the future exchange rate. Label the break-even point and the point at which the buyer of this option will strike it. c) If the interest rate on American assets is .1=10%, what is the forward rate for dollars and dinars, based on the premiums and strike price of the two options listed above? 2. Options a) Suppose a call option for the value of 100,000 dinars has a premium of.05 dollars per dinar, and a strike price of .5 dollars per dinar. Illustrate the value of buying this option as a function of the future exchange rate. Label the break-even point and the point at which the buyer of this option will strike it. b) Suppose a put option for the value of 100,000 dinars has a premium of .025 dollars per dinar and a strike price of .5 dollars per dinar. Illustrate the value of buying this option as a function of the future exchange rate. Label the break-even point and the point at which the buyer of this option will strike it. c) If the interest rate on American assets is .1=10%, what is the forward rate for dollars and dinars, based on the premiums and strike price of the two options listed above