Suppose an exchange rate dealer/trader of the Euro intends to create a Butterly by buying one call with $1.10 strike price (premium = $0.05), buying one call with strike price (premium = $0.02), and selling two call with $1.15 strike price at a price $0.03 each.

Each contract has one unit of the underlying asset (Euro).

a) What is the maximum profit that the exchange rate dealer could make?

b) What is the level of profit if ST = $1.14?

c) What is the breakeven ST, which lies between $1.10 and $1.15?