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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 ($/S$) cross-rate.

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 ($/S$) cross-rate. The current spot rate is $0.6000/S$. 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 $0.7000/S$. She has the following options on the Singapore dollar to choose from: Option Strike Price Premium Put on Sing $ $0.6500/S$ $0.00003/S$ Call on Sing $ $0.6500/S$ $0.00046/S$ 11.If the exchange rate is $0.7000/S$ at expiration, what is the profit (loss with negative sign) in $/S$ to buy an European Singapore dollar put? a. 0.0495 b. 0.04997 c. 0.05003 d. -0.05046 e. -0.00003 f. -0.00046 g. +0.00003 h. -0.0495 If the exchange rate is $0.7000/S$ at expiration, what is the profit (loss is negative) in $/S$ to sell an European dollar call? a. 0.04954 b. 0.04997 c. 0.05003 d. -0.05046 e. -0.00003 f. -0.00046 g. +0.00003 h. -0.04954

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