My answers correct?

My answers correct?

My answers correct?

My answers correct?

Question 1 10 pts Eric is purchasing a put option to hedge his transaction exposure. It has an underlying asset of MXN 298,313, a strike price of USD 0.040 per MXN. What is his payoff on this option if at maturity the spot rate is USD 0.052 per MXN, and the present value of the option premium is USD 2,266? Please give your answer to the nearest US dollar. -2,266 Question 3 5 pts In this case, would Eric have been better or worse off if he had instead used a forward contract with the same maturity and underlying asset, and a contractual exchange rate of USD 0.056 per MXN? Edit View Insert Format Tools Table 12pt v Paragraph B I I U Avor T v From question 1, As he does not exercise the option, he would lose the premium of 2266 USD and have to make the exchange on the spot rate of USD 0.052 per MXN. If he did the forward contract, at a rate of USD 0.056 per MXN, 0.052