An investor is expecting that the euro either will sharply increase or sharply decrease against the Japanese Yen. The investor purchases 2 options 1) a currency put option on the euro with a strike...

An investor is expecting that the euro either will sharply increase or sharply decrease against the Japanese Yen. The investor purchases 2 options

1) a currency put option on the euro with a strike price (exchange rate) of ¥127/€. When the investor purchases the contract, the spot rate of the euro is equivalent to ¥127/€.   the premium is ¥2/€

2) a currency call option on the euro with a strike price (exchange rate) of ¥127/€. When the investor purchases the contract, the spot rate of the euro is equivalent to ¥127/€.   the premium is ¥1/€

a) Assume the euro's spot price at the expiration date (market price) is ¥139/€

The investor's profit =  ¥/€

b) Assume the euro's spot price at the expiration date (market price) is ¥118/€

The investor's profit =  ¥/€

c) What is the maximum loss

Maximum loss =   ¥/€