A European put option contract with an exercise price of $$1\mathrm{.}75$ per pound and a contract size of $32,500$ is currently trading at a premium of $$0\mathrm{.}20$ per pound.

Required:

a$-1.$ If you buy this contract, what spot exchange rate at maturity will maximize your profit?

a$-2.$ If you buy this contract, what is the amount of the maximum possible profit from one contract?

b$.$ If you buy this contract, what is your maximum possible loss from one contract?

c$.$ If you sell this contract, what is your maximum possible profit on this contract?

d$-1.$ If you sell this contract, what is your maximum possible loss from one contract?

d$-2.$ At what future spot exchange rate will you maximize your loss?

e$.$ At what future spot exchange rate, will either the buyer or seller of this contract break even?