Score: 0 of 3 pts 1 of 5 (0 complete) HW Problem 7-1 (algorithmic) Tony Begay at Saguaro Funds. Tony Begay, a currency trader for Chicago-based Saguaro Funds, uses the following futures quotes, on the British pound () to speculate on the value of the pound. a. If Tony buys 5 June pound futures and the spot rate at maturity is $1 3983/9, what is the value of her position? b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4562/, what is the value of her position? c. If Tony buys 3 March pound futures, and the spot rate at maturity is $1.4562/, what is the value of her position? d. If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3983/ what is the value of her position? a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3983/, what is the value of her position? The value of Tony's position is s (Round to the nearest cent. Use a minus sign if value is negative.) Data Table (Click on the icon to import the table into a spreadsheet.) British Pound Futures, US$/pound (CME) Maturity Open High Low March 1.4246 1.4268 1.4214 June 1.4164 1.4188 1.4146 Settle 1.4228 1.4162 Change 0.0032 0.0030 Contract - 62,500 pounds High Open Interest 1.4700 25,605 114550 809 Print Done Enter your answer in the answer box and then click Check Answer 2 of 6 o complete) HW Score: 0%, 0 of 13 pts Problem 7-4 (algorithmic) Question Help Kapinsky Capital Geneva (A). Christoph Hoffeman trades currency for Kapinsky Capital of Geneva. Christoph has $10 million to begin with, and he must state all profits at the end of any speculation in U.S. dollars. The spot rate on the euro is $1.33597, while the 30-day forward rate is $1.33487. a. If Christoph believes the euro will continue to rise in value against the U.S. dollar, so that he expects the spot rate to be $1 3600/C at the end of 30 days, what should he do? b. If Christoph believes the euro will depreciate in value against the U.S. dollar, so that he expects the spot rate to be $1 2800 / at the end of 30 days, what should he do? a. If Christoph believes the euro will continue to rise in value against the US dollar, so that he expects the spot rate to be $1.3600/C at the end of 30 days, what should he do? (Select the best choice below.) O A. In this case, Christoph believes the dollar will be trading at $1.36007 C in the open market at the end of 30 days, but he has the ability to buy or sell dollars at a forward rate of $1.28001 He should therefore buy euros forward 30 days (requires no actual cash flow up front), and at the end of 30 days take delivery of those euros and sell in the spot market at the higher dollar rate for profit OB. In this case, Christoph believes the dollar will be trading at $1 2800 / C in the open market at the end of 30 days, but he has the ability to buy or sell dollars at a forward rate of 51 33481 He should therefore buy euros forward 30 days (requires no actual cash flow up front), and at the end of 30 days take delivery of those euros and sell in the spot market at the higher dollar rate for profit. OC. In this case, Christoph believes the dollar will be trading at $1.3348/ in the open market at the end of 30 days, but he has the ability to buy or sell dollars at a forward rate of 51.3600/. He should therefore buy euros forward 30 days (requires no actual cash flow up front), and at the end of 30 days take delivery of those euros and sell in the spot market at the higher dollar rate for profit. OD. In this case, Christoph believes the dollar will be trading at $1.36007 in the open market at the end of 30 days, but he has the ability to buy or sell dollars at a forward rate of $1.3348/. He should therefore buy euros forward 30 days (requires no actual cash flow up front), and at the end of 30 days take delivery of those euros and sell in the spot market at the higher dollar rate for profit. Click to select your answer and then click Check Answer ? 1 part Clean All remaining 0.50 AM 3 of 5 (o complete) Problem 7-8 (algorithmic) HW Score: 0%, 0 of 13 pts Question Help Vatic Capital. Cachita Haynes works as a currency speculator for Vatic Capital of Los Angeles Her latest speculative position is to profit from her expectation that the US dollar will rise significantly against the Japanese yen. The current spot rate is $119.00/$. 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/$? a. Should Cachita buy a put on yen or a call on yen? (Select the best choice below) O A. Cachita should buy a call on yen to profit from the rise of the dollar (the fall of the yen). O B. Cachita should buy a put on yen to profit from the fall of the dollar (the rise of the yen) O C. Cachita should buy a put on yen to profit from the rise of the dollar (the fall of the yen) D. Cachita should buy a call on yen to profit from the fall of the dollar (the rise of the yen) Data Table - X (Click on the icon to import the table into a spreadsheet.) Option Put on yen Call on yen Strike Price Y126/S Y126/$ Premium $0.00003/ $0.000461 Print Done Click to select your answer and then click Check Answer 3 parts Clean Check Answer remaining