Use the following information to answer the next two questions.

You believe the USdollar will depreciate relative to the pesoand appreciate relative to the pound over the next 3 months. a portfolio consisting of 4 three-month peso call contracts and 4 three-month pound put contracts to speculate on your belief.The call contracts have 5,000 pesos attached and have a strike price and premium of $.08 and $.03, respectively.The put contracts have 6,000 pounds attached and have a strike price and premium of $1.4 and $.06, respectively.

Find the value of your portfolio (in USD)if the spot rates at expiration are as follows:$.13/peso,$1.37/pound

-80

-1120

1120

320

Noneof theabove

Find the value of your portfolio(in USD)if the spot rates at expiration are as follows:$.07/peso,$1.3/pound.Roundintermediate steps twofourdecimalsand your final answerto twodecimals.