An investor is expecting that the euro either will sharply increase or sharply decrease against the Japanese Yen. The investo purchases 2 options

1) a currency put option on the euro with a strike price (exchange rate) of 126/. When the investor purchases the contra rate of the euro is equivalent to 126/. the premium is 2/

2) a currency call option on the euro with a strike price (exchange rate) of 126/. When the investor purchases the con rate of the euro is equivalent to 126/. the premium is 3/

a) Assume the euro's spot price at the expiration date (market price) is 137/ The investor's profit 3/%3D

b) Assume the euro's spot price at the expiration date (market price) is 115/ The investor's profit /

E) What is the maximum loss Maximum loss = /