You work as a broker for a US company that imports European foods into the US. You just signed a deal with an Italian producer of olive oil. Under the terms of the contract, in three months you will receive 400,000 liters of olive oil in exchange for 800,000 euros. You are going to sell the entire shipment of olive oil to Fresh Foods Market at $3 /liter. All cash flows occur in exactly three months.

Compute profits from the deal with the options hedge for spot exchange rate in three months from the range [$0.95/ , $1.4/].

I'm not sure how to calculate the total cost, options profit, and unhedged profit. Please let me know what I can do.