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

1) a currency put option on the euro with a strike price (exchange rate) of 126/. When the investor purchases the contract, the spot rate of the euro is equivalent to 126/. the premium is 3/

2) a currency call option on the euro with a strike price (exchange rate) of 126/. When the investor purchases the contract, the spot 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 136/ The investor's profit = /

b) Assume the euro's spot price at the expiration date (market price) is 114/ The investor's profit = /

c) What is the maximum loss Maximum loss = /