question 1-3:

Walmartis considering the purchase ofBritish Poundcall options (contract size:62,500) with a strike price $1.31/. The premium is$0.025/.

1.Ifthe spot at expiration is $1.28/, what is the Walmart's profit?

2.If the spot atexpiration is $1.33/, what is theWalmart's profit?

3.Ifthe spot at expiration is $1.36/Peso, what is the Walmart's profit?

question4-6:

Amazon buys a Mexico Pesoputoption (contract size: 500,000 Peso) at a premium of $0.0082/Peso. The exercise price is $0.054/Peso:

4.If the spot at expiration is$0.062/Peso, what is theAmazon'sprofit?

5.If the spot at expiration is$0.050/Peso, what is theAmazon'sprofit?

6.If the spot at expiration is0.042/Peso,,what is theAmazon'sprofit?