Use the following information for questions 14-15 The current spot rate is $.40/SF. The 6-month forward rate is $.41/SF. A call option that expires in 6-months on 100,000 SF with a strike price of $.40/SF is selling for $1,900. A put option that expires in 6-months on 100,000 SF with a strike price of $.40/SF is selling for $100. Six months from now, the spot rate will be $.39/SF (this information is unknown right now, but Im telling you).

14. If you entered into a contract to sell 100,000 SF in the forward contract, how much would you have made (lost)?

a. Lost $2,000

b. Lost $1,000

c. Made $1,000

d. Made $2,000

15. If you bought the put option, how much would you have made (or lost) including the original investment?

a. Lost $900

b. Lost $100

c. Made $900

d. Made $1,100