Find the value of your portfolio if spot rates at expiration

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You believe the US dollar will decrease relative to the Australian dollar (A$) and increase relative to the Hong Kong dollar (HK$) over the next 6 months. You decide to create a portfolio consisting of 10 six month Australian dollar put contracts and 10 six month Hong Kong dollar call contracts. The put contracts have 20,000 Australian dollars attached and have a strike price and premium of $1.05 and $.02, respectively. The call contracts have 75,000 Hong Kong dollars attached and have a strike price and premium of $.12 and $.01, respectively. Find the value of your portfolio (in USD) if the spot rates at expiration are as follows: $1.08/A$, $.14/HK$ -11500 11500 3500 -3500 None of the above

Reference no: EM131537080

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