Create profit graphs for the following futures and options contracts. A profit graph is a plot of

profit (on the y-axis) against the spot exchange rate at maturity (on the x-axis). Use the units and

labels specified for each contract. Unless otherwise stated, the profit should be calculated per-

unit of the underlying asset (i.e. assume quantity = 1).

1. A short put option on the euro with a strike price of $1.18 and a premium of $0.03. List your x-axis as $/ from 1 to 1.6. Your profit should be in $.