Solve part (c) and (d) of this problem below: XYZ plc has been offered the following quotes for options on the dollar given a current market price of 60 pence:

Strike price of dollar in pence Call premium Put premium

1 year 1 year

62 6.9 3.0

64 5.9 3.8

66 4.8 4.5

67 4.5 5.1 a. Calculate the net payout from a purchased call option at a strike price of 67 pence for the following possible maturity prices 55p, 60p,65p,70p,75p. b. Calculate the net payout for a written put option at 66p for the following possible maturity prices: 55p, 60p, 65p, 70p, 75p. c. Calculate the total cost of the dollar if the MNC were to implement part a and part b of this question for the following maturity prices: 55p, 60p, 65p, 70p, 75p. d. Outline the advantages and disadvantages of purchasing a call at 67p and writing a put at 66p for a MNC importing from the US.