A speculator has purchased United States dollar put options, with an exercise price of A$1.50 and a premium of A$0.10 per unit.

a. Calculate the break-even price.

b. Calculate the profit or loss of the option for the speculator if the spot rate at the time the speculator considers exercising the options is : (1) A$1.35 (2) A$1.45 (3) A$1.55.

c. What is the maximum profit and maximum loss for the speculator?