(Profit margin from underlying asset and a put option) A put option written on Energy-R-Us Corporation’s stock is selling for $2.50. The option has an exercise price of $20 and 6 months to expiration. The current market price for a share of Energy-R-Us is $26. Determine the profit from a strategy of buying the stock and buying the put; graph these profits. Use the following template:

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A B D 26.00 2.50 Energy-R-Us, 1 stock price 2 Put price, X $20 3 Stock price, ST, in 6 months 0 4567816 5 10 15 9 20 10 25 11 30 12 13 2345 35 40 15 45 50 Profit Profit from Total from put stock Profit