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She must choose between the following 90-day options on the Japanese yen: a. Should Cachita buy a put on yen or a call on yen?
She must choose between the following 90-day options on the Japanese yen: a. Should Cachita buy a put on yen or a call on yen? b. What is Cachita's breakeven price on the option purchased in part (a)? c. Using your answer from part (a), what is Cachita's gross profit and net profit (including premium) if the spot rate at the end of 90 days is 140.00=$1.00 ? a. Should Cachita buy a put on yen or a call on yen? (Select the best choice below.) A. Cachita should buy a put on yen to profit from the fall of the dollar (the rise of the yen). B. Cachita should buy a put on yen to profit from the rise of the dollar (the fall of the yen). C. Cachita should buy a call on yen to profit from the fall of the dollar (the rise of the yen). D. Cachita should buy a call on yen to profit from the rise of the dollar (the fall of the yen). b. What is Cachita's breakeven price on the option purchased in part (a)? Cachita's breakeven price on her option choice is $ per . (Round to five decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.)
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