Suppose that you are a speculator that anticipates an appreciation of the Singapore dollar (S$)….

Suppose that you are a speculator that anticipates an appreciation of the Singapore dollar (S$). You purchase a call option contract on Singapore dollars. Each contract represents S$40,000, with a strike price of $0.83 and call option premium of $0.03 per unit. Suppose that the spot price of the Singapore dollar is $0.84 just before the expiration of the call option contract. At this time, you call the contract and immediately sell the Singapore dollars to a bank at the current spot price. Use the drop-down selections to fill in the following table from your (the buyer’s) perspective. Note: Assume there are no brokerage fees. Transaction Per Unit Per Contract Selling Price of S$ $0.84 – Purchase Price of S$ – $0.83 – Premium Paid for Option – $0.03 = Net Profit