8. XYZ Corp. bought a call option on Singapore dollars for a premium of $0.03 per unit. The strike price was $1.56 and the spot price of Singapore dollar was $1.57, when the option was exercised. There are 35,500 units in one Singapore dollars option contract. Calculate the net profit for XYZ Corp. for this option.
9. XYZ Corp. sold a put option on Singapore dollars for a premium of $0.02 per unit. The strike price was $1.45 and the spot price of Singapore dollar was $1.42, when the option was exercised. There are 35,500 units in one Singapore dollars option contract. XYZ Corp. immediately sold all Singapore dollars received when the option was exercised. Calculate the net profit for XYZ Corp. for this option.
10. On the online exchange, March future contract on Italian Lira was available in June for $0.08 per unit. Forward contracts were also available for same settlement date at a price of $0.082 per Italian Lira unit. Explain all steps how a speculator may capitalize on this situation with zero transaction costs assumed. How would this affect the difference between the forward contract price and the futures price.