1.10. Suppose that a June put option to sell a share for $60 costs $4 and is held until June. Under what circumstances will the seller of the option (i... the party with the short position) make a profit? Under what circumstances will the option be exercised? Draw a diagram illustrating how the profit from a short position in the option depends on the stock price at maturity of the option 1.11. It is May and a trader writes a September call option with a strike price of $20. The stock price is $18 and the option price is $2. Describe the trader's cash flows if the option is held until September and the stock price is $25 at that time