A summary of the Japanese Balance of Payments for 1998 (in $ billion) is as follows. Please do some calculations and fill the right numbers in the five blanks from (1) – (5). (8 marks) Credits Debits Current Account (1) Exports (1) (1.1) Merchandise 374.04 (1.2) Services 62.41 (1.3) Factor income 209.58 (2) Imports -516.50 (2.1) Merchandise -251.66 (2.2) Services -111.83 (3.3) Factor income (2) (3) Unilateral transfer 5.53 -14.37 Balance on current account (3) Capital Account (4) Direct investment 3.27 -24.62 (5) Portfolio investment 73.70 -113.73 (5.1) Equity securities 16.11 -14.00 (5.2) Debt securities 57.59 -99.73 (6) Other investment 39.51 -109.35 Balance on financial account -131.22 (7) Statistical discrepancies 4.36 Overall balance Official Reserve Account (4) 2. Assume that the euro is trading at the spot price of 150.25 cents per unit. Further assume that the premium of an American call option with a strike price of 149 is 2.50 cents per unit. Calculate the intrinsic value and time value of the American call option. (6 points) 3. Three days ago, you entered into a EUR/USD futures contract to sell €62,500 at $1.20 / €. Over the past three days the contract has settled at $1.2 1/ €, $1.2 2/ €, and $1.2 4/ €. Suppose the initial margin ratio is 5%. Please solve the following problems one by one. (6 marks) (1)How much is the initial performance bond you must post to the futures exchange? (2) How much is your total profits or losses at the end of the third day? (3) How much is the balance of your margin account at the end of the third day?