1 Consider the euro call option for May with a strike price of $1.1200/€. This option gives the buyer the right to purchase a euro futures contract for €125,000 at a price per euro of $1.1200 until and including the expiry date in May. The price of the option, 1.09 US cents per euro. 2 Consider the euro put option for May at the strike price $1.1200/€. This option has a price per euro of 0.94 US cents, or $0.00940/€. The option to sell €125,000 up to and including the maturity date in May ⇒ Analyze the payoff profiles of buyer and writer of these two euro call/puy options for €125,000.

Please answer it with no descriptions or details, with the question numbers and answers, the exact way it should go on according to the red regulations, thank you!

(a) Suppose a trader takes a position on June 5th 2021, in one September 2021 EURO (EUR) future contract at USD1.3094/EUR. The trader holds the position until the last day of trading when the spot price is USD1.2939/EUR. This will be the final settlement price because of price convergence. The trader has EUR125,000 for this investment. (i) If the trader had a long position and he was a speculator, calculate his profit or loss for the position above. (ii) If the trader had a short position and he was a speculator, calculate his profit or loss for the position above. (iii) If the trader had a long position and he was a hedger, calculate his profit or loss for the position above. (iv) If the trader had a short position and he was a hedger, calculate his profit or loss for the position above. (b) Discuss factors that you would consider in evaluating the political risk associated before making FDI in a foreign country.

Choose all expressions that accurately complete the statement below:   Writing a European call option on £10,000 at a strike price of $1.80/£ and a premium of $0.02/£:   Group of answer choices   Obligates the optionholder to purchase £10,000 for $18,000 USD.   Will be profitable for the seller when the price of the GBP exceeds the put-call parity rate.   Obligates the writer to sell £10,000 on the expiration date if the optionholder chooses to exercise.   Allows the optionholder to exercise the option at any point up to the expiration date.   Earns the seller a premium of $200.