Queen Co. has purchased AUD options for speculative purposes. Each option was purchased for a premium of USD .02 per unit, with an exercise price of USD .89 per unit. (the exchange rate we use is AUDUSD) Queen Co. will purchase the AUD just before it exercises the options (if it is feasible to exercise the options). It plans to wait until the expiration date before deciding whether to exercise the options. In the following table, fill in the net profit (or loss) per unit to Queen Co. based on the listed possible spot rates of the AUD on the expiration date. (each row: 4 points with a total 24 points)

Possible St (AUDUSD) Whether the option Net Profit (Loss) per Unit

on Expiration Date is exercised? (Y or N) if Spot Rate Occurs

.81

.86

.89

.92

.95

1.01