2. A European put option is a right to sell a stock as a specified strike price on a specified date. Suppose that you have purchased a put option to sell a share of ABC Corp. in six months at a strike price of $60. The put option costs $5. For each possible share price, indicate whether you will exercise the put in column D (YES or NO) and calculate the payoff to you in column F. (Do not include the costs of the put in your payoff calculations.) Next, calculate the payoff schedule for your counterparty (the seller of the put option) in column G. Finally, calculate the profits for you (column I) and your counterparty (column J). Are the profits and losses limited or unlimited for this transaction? Why or why not? (Put your answer in cell B38)? 3. Suppose that you have purchased a forward contract that allows you to buy a share of ABC Corp. in six months at a contract price of $50. For each possible share price, calculate the payoff (profit) to you in column D. (Note that the payoffs and profits are the same for this contract.) Next, calculate the payoff schedule for your counterparty (the seller of the put option) in column E. Are the profits and losses limited or unlimited for this transaction? Why or why not? (Put your answer in cell B38)