Question 4 (20 marks) (a) The following information is available at the end of December, 2021: Spot exchange rate (AUD/USD) 1.9540 Three-month forward rate (AUD/USD) 1.9750 Price of a call option AUDO.02 Price of a put option AUDO.03 Exercise exchange rate for call option 1.9650 Exercise exchange rate for put option 2.0500 A forecaster has produced the following values of AUD/USD exchange rates prevailing at the end of March, 2022: (i) 1.9900 with probability of 0.65 (ii) 1.9400 with probability of 0.35. Required Based on the information above, determine the strategy which will provide the highest positive return (net profit) for the speculator, assuming that the speculator acts on the basis of the expected value of the forecast (You may use one unit of the underlying currency). [10 marks]