IBM will receive a payment totaling 5 million next month from Italian suppliers. It can buy euro put options with a strike price of $1.22 at a premium of 2.0 cents per euro. The spot price of the euro is currently $1.25, and the euro is expected to trade in the range of $1.18 to $1.30. IBM also can take a short position in the euro futures contract with futures price at $1.27. a. How many options and futures contracts will IBM need to protect its payment? Each contract size is 62,500 for options and 125,000 for futures and calculate the breakeven points (5 points) b. Diagram IBM's profit and loss associated with the put option position and futures position within its range of expected exchange rates. Ignore transaction costs and margins.(5 points) C. Calculate what IBM would gain or lose on the option and the future within the range of expected future exchange rates at three points: $1.20. $1.23 & $1.28.5 points)