Aphorisms Inc. has an expected cash inflow of 1 million on an accounts receivable balance due in six months. The owner, Laozi, wants to hedge this exposure with an option contract at a strike price of KCNY/EUR = 8.00 CNY/EUR and with a due date in 6 months. At this strike price, call option and put option prices are, respectively, CallCNY/EUR = 1.00 CNY/EUR and PutCNY/EUR = 2.00 CNY/EUR. Graph the following positions (ac) on the figure below.

a. The exposure of Laozis underlying position

b. The payoff of Laozis option contract at expiration including the option premium

c. The payoff of Laozis combined position including the option premium