2. A trader invests in Facebook by buying 1000 shares in June for $250 per share. She also buys 1000 put options for $5 each as insurance in case the stock drops sharply. The put options have a strike price of $250 and a maturity date of December.

What is the gain or loss if the stock price on December is:

a) $200,

b) $270,

c) $320 and

d) $370?