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Task 5-3 (8 points) Anna has bought 5 six-month Japanese yen call options (1,000,000 yen per option) with a striking price of 96 cents per
Task 5-3 (8 points) Anna has bought 5 six-month Japanese yen call options (1,000,000 yen per option) with a striking price of 96 cents per 100 yen. The premium is 1.4 cents per 100 yen. The spot rate is 95.28 cents per 100 yen. Anna believes the yen will appreciate over the next six months. a) Determine Anna's profit/loss if the yen appreciates to 105 cents 100 yen. The profit/loss will be USD. (fill in negative value if loss and round to integer USD) b) Determine Anna's profit/loss if the yen depreciates to 95 cents per 100 yen. Since the option expires (fill in "out of the money" or "in the money"), the profit/loss will be USD. (fill in negative value if loss and round to integer USD) c) Determine the future spot price at which Anna will only break even. The break-even spot price is cents per 100 yen. (round to 1 decimal)
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