A European put option on the common stock of XYZ Ltd. is currently selling for a price of $2 per share. The expiration date of the put is 3 months from now. The relevant interest rate is 4% per annum. The exercise price of the put $30 per share and the size of one put is 100 shares.

Suppose Ms. Parker sells 20 of these puts now, find her profit (loss), assuming the spot price of the stock on the expiration date to be equal to either (i) $15 or (ii) $40.

Secondly, find the break-even level of the spot price of the stock on the expiration date.