Q1 :An investor is bullish on the euro and believes it will increase against the Japanese Yen. The investor purchases a currency call option on the euro with a strike price (exchange rate) of 125/. When the investor purchases the contract, the spot rate of the euro is equivalent to 124/.

-Assume the euro's spot price at the expiration date (market price) is 135/. the premium is 4/ a)

- Assume the euro's spot price at the expiration date (market price) is 135/ The investor's profit = / b) Assume the euro's spot price at the expiration date (market price) is 121/ The investor's profit = / c)

-What is the maximum loss Maximum loss = /