Consider the investor in question 1https://www.chegg.com/homework-help/questions-and-answers/today-investor-buys-1-000-shares-eurozone-stock-60-per-share-spot-exchange-rate-130-per--6-q80027654?trackid=0o-1XHH3. Suppose that when the original investment was made, the investor obtained a six-month put option with a strike price $1.28 per . The premium is $.0138 per . The hedge is for 65,000. Calculate the value of the portfolio after six months has gone by for the following spot exchange rates.

(a)The spot exchange rate is $1.38 per .

(b)The spot exchange rate is $1.32 per .

(c)The spot exchange rate is $1.28 per .

(d)The spot exchange rate is $1.24 per .

(e)Briefly explain the key idea illustrated by the above example.