Assume a portfolio that consistsof a long position in two 3-month European call options and a short position in one 3-month European put option oneuros.Both the call and the put options have 125,000eurosattached. The strike price for the call and put options is $1.1 and $1.2, respectively.The call and put premiums are $.02 and $.05, respectively.

Calculate theprofit/loss (in terms of USD)on your portfolioif the spot rate is $1.25/euro when the options expire. Round intermediate steps to four decimals and your final answer to two decimals.