2. John holds a put option on FB stock with a strike of $200.

a. Present a table with Johns payoff as a function of the stock price at option expiration.

b. Present Johns payoff graphically (payoff as a function of the terminal stock price).

c. John paid $6 for the put option. Add Johns profit as a function of the stock price at expiration to the table from part (a) and to the graph from part (b).

d. What is the breakeven terminal stock price for John?

e. True/false: John will exercise the option for terminal stock values below $194 only.

f. Present graphically the payoff and profit for the seller of the put option (payoff as a function of the terminal stock price).