1.One year ago, you sold a put option on 125,000 euros with an expiration date of one year. You received a premium on the put option of $0.03 per unit.The exercise price was $1.22.Assume that one year ago, the spot rate of the euro was $1.20, the one-year forward rate exhibited a discount of 3%, and the one-year futures price was the same as the one-year forward rate.From one year ago to today, the euro depreciated against the dollar by 6%.Today the put option will be exercised.

oDetermine the total dollar amount of your profit or loss from your position in the put option.