Rob is a business analyst who argues that investing makes more profit when the inflation rate is high. he points to the high returns in the 1980s when inflation was around 12% and returns were as high as 20% or higher. evaluate rob's claim.

select the best answer from the choices provided.
a.
rob is correct because stocks and other goods increase in value due to inflation.
b.
rob is confusing the nominal rate of return with the real rate of return.
c.
rob is forgetting that inflation causes most businesses to do poorly.
d.
rob is correct because inflation enables dollar profits to buy more goods.

Profits from using currency options and futures. on july 2, the two-month futures rate of the mexican peso contained a 2 percent discount (unannualized). there was a call option on pesos with an exercise price that was equal to the spot rate. there was also a put option on pesos with an exercise price equal to the spot rate. the premium on each of these options was 3 percent of the spot rate at that time. on september 2, the option expired. go to the oanda. com website (or any site that has foreign exchange rate quotations) and determine the direct quote of the mexican peso. you exercised the option on this date if it was feasible to do so. a. what was your net profit per unit if you had purchased the call option? b. what was your net profit per unit if you had purchased the put option? c. what was your net profit per unit if you had purchased a futures contract on july 2 that had a settlement date of september 2? d. what was your net profit per unit if you sold a futures contract on july 2 that had a settlement date of september 2