Use the following information to answer the next two questions.

You believe the US dollar will increase relative to the Australian dollar (A$) and decrease relative to the Hong Kong dollar (HK$) over the next 6 months. You decide to create a portfolio consisting of 10 six month Australian dollar call contracts and 10 six month Hong Kong dollar put contracts. The call contracts have 10,000 Australian dollars attached and have a strike price and premium of $1.05 and $.02, respectively. The put contracts have 50,000 Hong Kong dollars attached and have a strike price and premium of $.12 and $.01, respectively.

Find the value of your portfolio (in USD) if the spot rates at expiration are as follows: $1.08/A$, $.14/HK$

		-3000
		-4000
		4000
		3000

Find the value of your portfolio (in USD) if the spot rates at expiration are as follows: $1.03/A$, $.09/HK$

		-8000
		8000
		5000
		-5000