You observe that the spot price of the swiss franc chf is, Financial Management

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You observe that the spot price of the swiss franc chf is

1. A call option on the EUR, with time to maturity of 3 months and strike price of 1.12 USD/EUR, is currently trading at a premium of 0.03 USD. If you buy call options on 80,000 EUR, and then at maturity the Euro is trading at 1.26 USD/EUR, what is your net profit from this position?

2. You observe that the spot price of the Swiss franc (CHF) is 1.17 USD/CHF, and that the 1 year forward rate is 1.17 USD/CHF. What is the percent forward premium?

Enter answer as percent, accurate to 2 decimal places.

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Financial Management: You observe that the spot price of the swiss franc chf is

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