One year ago, you sold a put option on 100,000 euros with an expiration date of 1 year. you received a premium on the put option of $0.04 per unit. the exercise price was $1.22. assume that 1 year ago the spot rate of the euro was $1.20, the 1-year forward rate exhibited a discount of 2 percent, and the 1-year futures price was the same as the 1-year forward rate. from 1 year ago to today, the euro depreciated against the dollar by 4 percent. today the put option will be exercised (if it is feasible for the buyer to do so).

There are two problems for this question:1.What is the total dollar amount of your profit and loss:
Put option premium is equal to 0.04 per unit.
The exercise price is 1.22
One option contract is 100,000
Selling price is 1.20
-Purchase prise is - 1.22
-Premium paid is +0.04
Net profit is = 0.02 x 100,000 = 2,000 – 80 = 1,920

2.Now undertake that as an alternative of taking a position in the put option one year ago, you sold a future's contract on 100,000 euros with a payment date of one year.
Find the total dollar amount of your profit or loss.
Solution: Contract to buy: $1.20 x 100,000 = 120,000 at payment date.
Contract to sell: $1.22 x 100,000 = 122,000 at settlement date
Settle contracts: -2,000 - 80 = -$2,080

Answer:

a. energy is absorbed in the reaction.

explanation:

if in a given reaction the energy of products is greater than the energy of reactants it means that reaction is endothermic and during the reaction, the energy is absorbed by reactants. in an endothermic reaction, the products have more stored chemical energy than the reactants. and in this reaction the reactants are more stable than products before the compounds with less energy are always more stable.

Bis the answerhope it !