An investor is bullish on the euro and believes it will increase against the Japanese Yen. The investor purchases a currency call option on the euro with a strike price (exchange rate) of 124/. When the investor purchases the contract, the spot rate of the euro is equivalent to 125/. Assume the euro's spot price at the expiration date (market price) is 133/. the premium is 5/

a) Assume the euro's spot price at the expiration date (market price) is 133/

The investor's profit = /

b) Assume the euro's spot price at the expiration date (market price) is 121/

The investor's profit = /

c) What is the maximum loss

Maximum loss = /