6. Colonel Mustard has decided to expand his small business and has begun producing ketchup. However, with most local sporting events being held without fans this sum- mer, he is worried that the price of ketchup may be below the average indicated by his market research. His cost of producing 1000 bottles of ketchup is $2500. He is confident that he can sell his ketchup for between $2 and $7 per bottle. To hedge his possible losses if the average price of ketchup turns out to be $x per bottle, he pays $1200 to purchase a put option to sell 1000 bottles at $3.50 per bottle. Explain how this helps control for losses for $2