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Consider you just sold an OTC put option on EUR100,000 with a strike price of USD1.20 /EUR. The option premium is $0.005/EUR. Consider the following

Consider you just sold an OTC put option on EUR100,000 with a strike price of USD1.20 /EUR. The option premium is $0.005/EUR. Consider the following three scenarios: future spot exchange rate is USD1.10 /EUR, . USD1.20 /EUR, USD1.30 /EUR. What would be your payoff as a seller on this put option, with premium being considered? Please work out the payoff worksheet.

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