3. You sold a put option for 125,000. The exercise price is $1.8/. The option premium is $0.05/.

a.Please draw the profit diagram for your total position. Show the total premium as well as the break-even point.

b.If the exchange rate in three months is $1.50/, what would be your profit/loss?

c.If instead, the exchange rate in three months is $1.77/, what would be your profit/loss?

d.If instead, the exchange rate in three months is $1.95/, what would be your profit/loss?