(1) If the market exchange rate of the Swiss franc is lower than the price of the option agreement, the option will be abandoned, and the loss cost is the option fee:125000 * 50 * 0.02 =125000 USD.
(2) If the exchange rate is higher than the agreed price, exercise the option, that is, buy 50 *125,000 Swiss francs at the agreed price, and then sell them from the market, MINUS the option fee, which is the income:
50 * 1.25 million * (0.57-0.55)- 1.25 million * 50 * 0.02 = 0.
Because the difference between the market price and the contract price is just the option fee, which is the break-even point of option trading, and the profit and loss is zero.
(3) The same as (2), the profit and loss during exercise: 50 * 125000 * (0.59-0.55)-125000 * 50 * 0.02 =125000 USD, and the income is/kloc-