subject
Business, 24.03.2020 02:12 diamondgdm

Cece Cao in Jakarta. Cece Cao trades currencies for Sumatra Funds in Jakarta. She focuses nearly all of her time and attention on the U. S. dollar/Singapore dollar ($/S$) cross-rate. The current spot rate is $0.6000/S$. After considerable study, she has concluded that the Singapore dollar will appreciate versus the U. S. dollar in the coming 90 days, probably to about $0.7000/S$. She has the following options on the Singapore dollar to choose from:

Option Strike Price Premium
Put on Sing $ $0.6500/S$ $0.00003/S$
Call on Sing $ $0.6500/S$ $0.00046/S$
a. Should Cece buy a put on Singapore dollars or a call on Singapore dollars?
b. What is Cece's break-even price on the option purchased in part (a)?
c. Using your answer from part (a), what is Cece's gross profit and net profit (including premium) if the spot rate at the end of 90days is indeed $0.7000/S$?
d. Using your answer from part (a), what is Cece's gross profit and net profit (including premium) if the spot rate at the end of 90 days is $0.8000/S$?

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 15:20
The beginning inventory is expected to be 2,000 cases. expected sales are 10,000 cases, and the company wishes to begin the next period with an inventory of 1,000 cases. the number of cases the company must purchase during the month is multiple choice 9,000 cases. 10,000 cases. 11,000 cases. 13,000 cases.
Answers: 1
question
Business, 22.06.2019 05:20
142"what is the value of n? soefon11402bebe99918+19: 00esseeshop60-990 0esle
Answers: 1
question
Business, 22.06.2019 12:00
In mexico, many garment or sewing shops found they could entice many young people to work for them if they offered clean, air conditioned work areas with high-quality locker rooms to clean up in after the work day. typically, traditional garment shops had to offer to get workers to apply for the hard, repetitive, and somewhat dangerous work. a. benchmark competitive wages b.compensating differentials c. monopoly wages d. wages based on human capital development of each employee
Answers: 3
question
Business, 22.06.2019 16:30
Why is investing in a mutual fund less risky than investing in a particular company’s stock?
Answers: 3
You know the right answer?
Cece Cao in Jakarta. Cece Cao trades currencies for Sumatra Funds in Jakarta. She focuses nearly all...
Questions
question
Biology, 26.06.2020 16:01
question
Social Studies, 26.06.2020 16:01
Questions on the website: 13722366