5) Suppose you sold a put contract on the euro with an exercise price of $1.14/ for which you received $1,000. Contracts are for 125,000 euros. How much would you gain or lose if the put were exercised at the exercise price and you subsequently sold the euros at the market price of $1.12/euro?

6) You are to receive 145,000 on July 30 from a customer in Germany. Todays spot price is $1.14/ and the August forward rate is $1.18/. You enter an August futures contract (125,000) to sell the euro at $1.18/. When you receive the 145,000 on July 30 the spot exchange rate is $1.15/ and you sell the 145,000. On that same day you close your futures contract at $1.15/. What is the effective exchange rate you received for the 145,000? Go to 4 decimal places.