Question 4 (6 points) Listen Suppose you sold a call option with a $50 premium. The strike price is $1,200. What is your expected payoff if the price of the underlying asset is $1,000. Your Answer: Answer Question 5 (4 points) Listen = Suppose you need to pay V = 50,000 GBP in a year from now. Spot rate of GBP is 1.3. You do not have enough USD to purchase 50,000 GBP right now. Assume the forward premium = 0.03 What is the benefit of hedging with forward contract if the GBP spot rate in a year from now is 1.2