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1. You short one IBM July 2021 200 put for a premium of $9.77/share. If you hold the option to the expiration date when the
1. You short one IBM July 2021 200 put for a premium of $9.77/share. If you hold the option to the expiration date when the IBM stock sells for $201 per share.
(1) How much is the payoff and profit/loss? (2 points)
(2) What is the breakeven point? (1 points)
(3) Draw a complete payoff and profit/loss diagram.
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