Question
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
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). Feel free to combine graphs where it makes sense if you like.
a.A long futures contract on the dollar with a contract price of 0.80. List your x-axis as /$ from 0.625 to 1. Your profit should be in .
b. A short futures contract on the dollar with a contract price of 0.80. List your x-axis as /$ from 0.625 to 1. Your profit should be in .
c. A long 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 $.
d. 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 $.
Please Help!!
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