You are bullish on the USD and decide to long call position with exercise price rate CHF$0\mathrm{.}92$

and premium rate at CHF$0\mathrm{.}03.$

$($a$)$ Calculate the payoff for the range of spot price. Complete the table below.

Position Exercise

price

Future

spot price

Action

taken

Payoff ITM$/$ATM$/$

OTM

Long CALL CHF$0\mathrm{.}94$

Long CALL CHF$0\mathrm{.}98$

Long CALL CHF$0\mathrm{.}99$

Long CALL CHF$0\mathrm{.}97$

Long CALL CHF$0\mathrm{.}95$

Long CALL CHF$0\mathrm{.}90$

Long CALL CHF$0\mathrm{.}88$

$(15$ marks$)$

$($b$)$ Show the diagram$/$graph of LONG call to support your answer in $($a$).$

$(10$ marks$)$