1. An investor enters into a short forward contract on 161 thousand GBP for 1.57 USD each. How much does the investor profit if the exchange rate at the end of the contract is 1.59 USD/GBP? Note: GBP is British pounds, USD is US dollar.
2. You buy a put option on a stock for a premium of $4.82. The current stock price is $50, and the option strike price is $42. What is your break-even stock price?