Question The following information is currently available for 1000 British Pound (GBP) option expiring in a month: Put Option Strike Price= 40 Thai Baht (THB) Put Option Premium= 2 Baht per unit Call Option Strike Price= 38 Thai Baht (THB) Call Option Premium= 1 Baht per unit Put Option with the same exercise price has a premium of 1 Baht per unit Current Spot Rate= 39 Baht

Required A. What is the total profit/loss for the buyer of the British Pound Strangle if GBP appreciates by 8% in one month? (Show all necessary calculation and mention that the option will be exercised or not. Just calculation is not enough. Please mention your steps.)