Call and Put for Euro

10,000 Euros in contract US$ = 1 Euro

Exercise Price of Price of

Price Calls Puts

$1.15 $.02 $.03

. Calculate the net profit for the call for the Euro above (price = $.02 X = $1.15) if you purchased it at $.02 and you covered your call at expiration when the Euro was trading at $1.19

b. Calculate the net profit for the put for the Euro above (price = $.03 X = $1.15) if you purchased it at $.03 and you covered your put at expiration when the Euro was trading at $1.19.

c. Construct a contingency graph for the call above (price = $.02 X=$1.15) for both buying and selling the call (assume it is at expiration X axis is US dollars per Euro and Y axis is Payoff of the call)

d.Construct a contingency graph for the put above (price = $.03 X=$1.15) for both buying and selling the put (assume it is at expiration X axis is US dollars per Euro and Y axis is Payoff of the put)

5. Construct a contingency graph for a long straddle for the call and put above (X=$1.15

Call .02 Put $.03).