Problem 7-11 (algorithmic) Question Help * Calandra Panagakos works for CIBC Currenoy Funds in Toronto. Calandra is something of a dollar (C$) will appreciate versus the U.S. dollar over the coming 90 days. The current spot rate is $0.6746/CS. Calandra may choose between the following options on the Canadian dolar Put on C$ (S/CS) 0.7002 0.00002 0.00048 Call on CS (SICS) 0.7002 a. Should Calandra buy a put on Canadian dollars or a call on Canadian dollars? b. What is Calandra's breakeven price on the option purchased in part (a)? e. Using your answer from part (a), what is Calandra's gross proft and net profit (including premium) if the spot rate at the end of 90 days is indeed $0.7601/C$? d. Using your answer from part (a), what is Calandra's gross profit and net proft (including premium i the spot rate at the end of 90 days is $0 8253/05? O A. Since Calandra expects the Canadian dollar to appreciate versus the US dollar, she should buy a call on Canadian dollars O B. Since Calandra expects the Canadian dollar to appreciate versus the US dollar, she should buy a put on Canadian dollars O C. Since Calandra expects the Canadian dollar to depreciate versus the US dollar, she should buy a call on Canadian dollars O D. Since Calandra expects the Canadian dollar to depreciate versus the US dollar, she should buy a put on Canadian dollars Problem 7-11 (algorithmic) Question Help * Calandra Panagakos works for CIBC Currenoy Funds in Toronto. Calandra is something of a dollar (C$) will appreciate versus the U.S. dollar over the coming 90 days. The current spot rate is $0.6746/CS. Calandra may choose between the following options on the Canadian dolar Put on C$ (S/CS) 0.7002 0.00002 0.00048 Call on CS (SICS) 0.7002 a. Should Calandra buy a put on Canadian dollars or a call on Canadian dollars? b. What is Calandra's breakeven price on the option purchased in part (a)? e. Using your answer from part (a), what is Calandra's gross proft and net profit (including premium) if the spot rate at the end of 90 days is indeed $0.7601/C$? d. Using your answer from part (a), what is Calandra's gross profit and net proft (including premium i the spot rate at the end of 90 days is $0 8253/05? O A. Since Calandra expects the Canadian dollar to appreciate versus the US dollar, she should buy a call on Canadian dollars O B. Since Calandra expects the Canadian dollar to appreciate versus the US dollar, she should buy a put on Canadian dollars O C. Since Calandra expects the Canadian dollar to depreciate versus the US dollar, she should buy a call on Canadian dollars O D. Since Calandra expects the Canadian dollar to depreciate versus the US dollar, she should buy a put on Canadian dollars
