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Samuel Samosir works for Peregrine Investments in Jakarta, Indonesia. He focuses his time and attention on the U.S. dollar/Singapore dollar ($/S$) cross-rate. The current spot

Samuel Samosir works for Peregrine Investments in Jakarta, Indonesia. He focuses his time and attention on the U.S. dollar/Singapore dollar ($/S$) cross-rate. The current spot rate is $1.39/S$. After considerable study, he has concluded that the Singapore dollar will appreciate versus the U.S. dollar in the coming 90 days, probably to about $1.44/S$. He is considering trading options to profit and has the following options on the Singapore dollar to choose from

Option choices on the Singapore dollar:

Call on S$

Put on S$

Strike price (US$/Singapore dollar)

$1.35

$1.37

Premium (US$/Singapore dollar)

$0.047

$0.006

Determine if the following statement is true or false.

Samuel should buy call options on Singapore dollars to profit.

Select one:

True

False

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