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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

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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 $119.00/5. 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 not profit (including premium) if the spot rate at the end of 90 days is *140.00/5? a. Should Cachita buy a put on yen or a call on yen? (Select the best choice below.) A. Cachita should buy a put on yen to profit from the fall of the dollar (the rise of the yen) O B. Cachita should buy a call on yen to profit from the rise of the dollar (the fall of the yen) OC. Cachita should buy a put on yen to profit from the rise of the dollar (the fall of the yon) OD. Cachita should buy a call on yen to profit from the fall of the dollar (the rise of the yen) b. What is Cachita's breakeven price on the option purchased in part a? Cachita's break wven price on her option choice is $ Enter as US dollars and round to five decimal places) c. Using your artwet from part, what is Cachita's gross profit and net profit (including premium) if the spot rate at the end of 90 days is 140 00/5? Cachita's gros proft. the ending spot rate is 140,00/5, I SW (Enter as US dollars and round to five decimal place) Cachito's nut profit, the ending spot rate is 140 00/5, ISIM (Enter as US dollars and round to live decimal places) Data table (Click on the icon to import the table into a spreadsheet.) Option 0 Put on yen Call on yen Strike Price 125/$ 125/$ Premium $0.0000374 $0.00046/ Print Done

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