Today's spot exchange rate is in1=\$1.2563 . Consider the following PUT option on euro, '126 December Euro' which is selling at 0.73 per . For a trader who has a long position on the put option, answer the following questions.

(1) Determine the payoff and profit/loss if today is the expiration date.

(2) Draw and LABEL CLEARLY the option payoff line and profit/loss line for the put option holder and INDICATE CLEARLY the following information and the values on the graph, (a) The break-even spot rate for the put option; (b) The maximum loss for the put holder if the option is not exercise at expiration; (c) The spot price that makes the put option at- the-money .