(Put option profits) It is 18 July 2015 and you’ve just bought one put option on ItStinks stock. The option cost you $3, expires on 13 March 2016, and has an exercise price of $35.

a. Complete the Excel table below.

b. Make a graph which shows the profit (column C) on the y-axis and the stock price ST on 13 Mar 16 (column A) on the x-axis.

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A ItStinks stock price, 13 Mar 16 (ST) 0 B Exercise the put option? 123456789 5 10 15 20 25 30 35 10 40 11 45 12 50 C Profit