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Cachita Haynes works as a currency speculator for Vatic Capital of Los Angeles. The current spot...

Cachita Haynes works as a currency speculator for Vatic Capital of Los Angeles. The current spot rate is ¥120.00/$. She must choose between the following 90-day options on the Japanese yen:                                        

              

Option                  Strike Price                        Premium

Put on yen                         $0.00800/¥                        $0.00003/¥

Call on yen                         $0.00800/¥                        $0.00046/¥

                                                                                         

What is Cachita's breakeven price to buy a call?

a. 0.00503 b. 0.005046 c. 0.00603    d. 0.00846   e. 0.00803   f. 0.007970   in (dollar/yen)    

What is Cachita's breakeven price to buy a put?

a. 0.00503  b. 0.005046  c. 0.00603    d. 0.00846   e. 0.00803   f. 0.007970   in (dollar/yen)     

When Cachita buys a put and the spot rate is ¥120.00/$, the gain of loss per yes is $.

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