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Costco buys a euro put option contract size 125000 at a


Costco buys a Euro put option (contract size: €125,000) at a premium of $0.13/€. The exercise price is $1.18/€:

a. If the spot at expiration is $1.27/€, what is the Costco's profit?

b. If the spot at expiration is $1.09/€, what is the Costco's profit?

c. If the spot at expiration is $1.00/€, what is the Costco's profit?

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Basic Statistics: Costco buys a euro put option contract size 125000 at a
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