1. Jim Taylor, the CFO of JPL, Inc. has just bought a put option on the SGD. This particular put option has a breakeven price of USD 1.31/SGD. If Jim paid USD 0.04/SGD for this option, how much is the strike price?

a) USD 1.31/SGD

b) USD 0.04/SGD

c) USD 1.27/SGD

d) USD 1.35/SGD

2. In futures trading, the futures price is _____________ at contract initiation, and the spot exchange rate is _________________ throughout the duration of the contract.

a) fixed / variable

b) variable / fixed

c) raised by 10% / reduced by 10%

d) controlled by the Chicago Mercantile

e) Exchange / monitored by the SEC