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On JAN 15 firm F buys an IR call option with K=10%.10% is the current...

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On JAN 15 firm F buys an IR call option with K=10%.10% is the current value of the 90 -day LIBOR. The principal of the call option is $30million and the call expires on MAR 15 . The call premium is c=$30,000. On a time line starting at JAN 15 describe all the cash flows incurred by F if on MAR 15 the 90-day LIBOR turns out to be: 6.18.86% 6.211.35% Redo Q6 if instead of a call F bought an IR put. All the rest is the same as in Q6

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