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Sallie Schnudel trades currencies for Keystone Funds in Jakarta. She focuses nearly all of her time and attention on the U.S. dollar/Singapore dollar (5/55) cross-rate.

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Sallie Schnudel trades currencies for Keystone Funds in Jakarta. She focuses nearly all of her time and attention on the U.S. dollar/Singapore dollar (5/55) cross-rate. The current spot rate is $0.6000/5$. After considerable study, she has concluded that the Singapore dollar will appreciate versus the U.S. dollar in the coming 90 days, probably to about 50.7000/55. She has the following options on the Singapore dollar to choose from: Option Strike Price Premium Put on Sings 50.6500/5$ $0.00003/5$ Call on Sing $ $0.6500/55 $0.00046/5$ 11.If the exchange rate is $0.7000/55 at expiration, what is the profit (loss with negative sign) in $/5$ to buy an European Singapore dollar put? a. 0.0495 b, 0.04997c. 0.05003 d.-0.05046 e.-0.00003 f. -0.00046 g +0.00003 h. -0,0495 If the exchange rate is $0.7000/55 at expiration, what is the profit (loss is negative) in 5/5$ to sell an European dollar call? a. 0.04954 . 0.04997c 0.05003 d. 0.05046 -0.00003 f. -0.00046 0.00003 h, 0.04954

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