The spot rate of the New Zealand dollar is $.78. A call option on New Zealand dollars with a 1-year expiration date has an exercise price of $.79 and a premium of $.04. A put option on New Zealand dollars at the money with a 1-year expiration date has a premium of $.04. You expect that the New Zealand dollars spot rate will decline over time and will be $.72 in 1 year.

Q: Please show a combination strategy and their break-even points with the information given in the question.