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On July 2, the two-month futures rate of the Mexican peso contained a 4 percent discount (unannualized). The spot rate of the Mexican peso was

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On July 2, the two-month futures rate of the Mexican peso contained a 4 percent discount (unannualized). The spot rate of the Mexican peso was $0.051. There was a call option on pesos with an exercise price that was equal to the spot rate. There was also a put option on pesos with an exercise price equal to the spot rate. The premium on each of these options was 3 percent of the spot rate at that time. On September 2, the option expired. You exercised the option on this date if it was feasible to do so. On September 2, the spot rate of the Mexican peso was $0.049. a. What was your net profit per unit if you had purchased the call option? Use a minus sign to enter loss values, if any. Round your answer to four decimal places. b. What was your net profit per unit if you had purchased the put option? Use a minus sign to enter loss values, if any. Round your answer to four decimal places. 5 c. What was your net profit per unit if you had purchased a futures contract on July 2 that had a settlement date of September 2 ? Use a minus sign to enter loss values, if any. Round your answer to four decimal places. d. What was your net profit per unit if you sold a futures contract on July 2 that had a settlement date of September 2? Use a minus sign to enter loss values, if any. Round your answer to four decimal places. Two British pound ( ) put options are available with exercise prices of $1.61 and $1.65. The premiums associated with these options are $0.05 and $0.06 per unit, respectively. One option contract represents 31,250. a. Describe how a bull spread can be constructed using these put options. What is the difference between using put options versus call options to construct a bull spread? A bull spread can be constructed with buying the put option. The difference between using call and put options to construct a bull spread is that using put options results in a spread. b. Complete the worksheet for the bull spread, Use a minus sign to enter loss values, if any. If the answer is zero, enter " 0. Round your answers to the nearest cent. - maprust experation, the spot rate of the pound is $1.61. What is the bull spreader's total gain or loss? Use a minus sign to enter loss values, if any. Round your answer to the nearest dollar. 5 d. At option expiration, the spot rate of the pound is \$1.58. What is the bear spreader's total gain or loss? Use a minus sign to enter loss values, if any. Round your answer to the nearest dollar

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