A B C D E F G H

PROFIT (US CENTS PER SWISS FRANC)

1 Exhibit 8.4 BUYING A CALL OPTION ON SWISS FRANCS
2 Cost of the Call Option $0.005
3 Exercise Price $0.585
4 Spot price of Swiss Franc (US$) $0.570 $0.580 $0.585 $0.590 $0.600 $0.610
5 Buyer's Payoff for Call Option (US cents/Swiss Franc) (0.500) (0.500) (0.500) 0.000 1.000 2.000
6
7
8 Strike price
9 "At the money"
10
11 "Out of the money" "In the money"
12
13 Area of
14 Unlimited
15 2.00 Profit
16
1.50
17
18 1.00
Area of Limited Loss
19
0.50
20 Break-even price
21 0.00
22
23 (0.50)

24 (1.00)
25 $0.570 $0.575 $0.580 $0.585 $0.590 $0.595 $0.600 $0.605 $0.610
SPOT PRICE (US CENTS PER SWISS FRANC)
26
27 Key Cell Entries
28 B5: =IF(B4>$B$3,B4-$B$3-$B$2,-$B$2)*100, copy to C5:G5
 A B C D E F G H
PROFIT (US CENTS PER SWISS FRANC)
1 Exhibit 8.5 SELLING A CALL OPTION ON SWISS FRANCS
2 Cost of the Call Option $0.005
3 Exercise Price $0.585
4 Spot price of Swiss Franc (US$) $0.570 $0.580 $0.585 $0.590 $0.600 $0.610
5 Seller's Payoff for Call Option (US cents/Swiss Franc) 0.500 0.500 0.500 0.000 (1.000) (2.000)
6
7
8
9
Break-even price
10
11 Area of Limited Profit
12
13
14 Area of
15 1.00 Unlimited
16 Loss
0.50
17
18 0.00

19 "In the money" "Out of the money"

(0.50)
20 Strike price
21 (1.00) "At the money"
22
23 (1.50)

24 (2.00)
25 $0.570 $0.575 $0.580 $0.585 $0.590 $0.595 $0.600 $0.605 $0.610
SPOT PRICE (US CENTS PER SWISS FRANC)
26
27 Key Cell Entries
28 B5: =IF(B4<=$B$3,$B$2,-(B4-$B$3-$B$2))*100, copy to C5:G5
 A B C D E F G H
PROFIT (US CENTS PER SWISS FRANC)
1 Exhibit 8.6 BUYING A PUT OPTION ON SWISS FRANCS
2 Price of the Put Option $0.005
3 Exercise Price $0.585
4 Spot price of Swiss Franc (US$) $0.560 $0.570 $0.580 $0.585 $0.590 $0.600
5 Buyer's Payoff for Call Option (US cents/Swiss Franc) 2.000 1.000 0.000 (0.500) (0.500) (0.500)
6
7
8 Strike price
9 "At the money"
10
"In the money" "Out of the money"
11
12
13
14 Area of Profit
up to 58 cents
15 2.00
per Swiss franc
16
1.50
17
18 1.00
Area of Limited Loss
19
0.50
20 Break-even price
21 0.00
22
23 (0.50)

24 (1.00)
25 $0.560 $0.565 $0.570 $0.575 $0.580 $0.585 $0.590 $0.595 $0.600
SPOT PRICE (US CENTS PER SWISS FRANC)
26
27 Key Cell Entries .
28 B5: =IF(B4<=$B$3,$B$3-$B$2-B4,-$B$2)*100, copy to C5:G5
 A B C D E F G H

PROFIT (US CENTS PER SWISS FRANC)

1 Exhibit 8.7 SELLING A PUT OPTION ON SWISS FRANCS
2 Price of the Put Option $0.005
3 Exercise Price $0.585
4 Spot price of Swiss Franc (US$) $0.560 $0.570 $0.580 $0.585 $0.590 $0.600
5 Seller's Payoff for Put Option (US cents/SF) (2.000) (1.000) 0.000 0.500 0.500 0.500
6
7
8
9
Break-even price
10
Area of Limited Profit
11 of 50 cents/SF
12
13
Area of Unlimited Loss
14
(up to $58.00/SF)
15 1.00

16
0.50
17
18 0.00

19
(0.50)
20 Strike price
"Out of the money" "At the money" "In the money"
21 (1.00)
22
23 (1.50)

24 (2.00)
25 $0.560 $0.565 $0.570 $0.575 $0.580 $0.585 $0.590 $0.595 $0.600
SPOT PRICE (US CENTS PER SWISS FRANC)
26
27 Key Cell Entries
28 B5: =IF(B4<=$B$3,-$B$3+$B$2+B4,$B$2)*100, copy to C5:G5
 A B C D E
1 Exhibit 8.8 ANALYSIS OF CALL OPTION ON BRITISH POUNDS
2 Input Data
3 Present spot rate, $/£ $1.70
4 Strike price, $/£ $1.70
5 Time to maturity, days 90
6 Forward rate for matching maturity (90 days), $/£ $1.70
7 U.S. dollar interest rate, pct/yr 8.0%
8 British pound sterling interest rate, pct/yr 8.0%
9 Standard deviation of daily spot price movement, pct/yr 10.0%
10 Effect of Spot Rate on Intrinsic, Time, and Total Value
11 Intrinsic value, Time value, Total value,
12 Spot rate, $/£ US cents/£ US cents/£ US cents/£
13 1.65 0.00 0.00
14 1.66 0.00 1.67 1.67
15 1.67 0.00 2.01 2.01
16 1.68 0.00 2.39 2.39
17 1.69 0.00 2.82 2.82
18 1.70 0.00 3.30 3.30
19 1.71 1.00 2.82 3.82
20 1.72 2.00 2.39 4.39
21 1.73 3.00 2.01 5.01
OPTION PREMIUM, US

22 1.74 4.00 1.67 5.67

23
CENTS/POUND

24
25
26
27
28
29
30 6.00
3.30
31 5.00 TOTAL
32 VALUE

33 4.00

34 TIME VALUE
3.00
35
INTRINSIC VALUE
36 2.00
37
1.00
38
39 0.00
40 1.66 1.67 1.68 1.69 1.70 1.71 1.72 1.73 1.74
SPOT RATE, DOLLARS/POUND
41
42 Key Cell Entries
43 B12: =IF(A12<$D$3,0,A12-$D$3)*100, copy to B13:B21
44 C12: = Calculated with option-pricing software
45 D12: =B12+C12, copy to D13:D21