ABC stock is trading at 40. The trader has already sold one put with the strike price of 40 at 4 with expiry date 1 month from now. The trader reviews the market and short sells one share. You are required to analyse the trader's strategy at the time T = 1 month. Assume the interest rate is flat at 0% pa for all periods. Also assume that 1 put is on one share

a. Compute the net profit at S = 0,20,30,40, 50, 100 where T = 1 month

b. What is the break even point

c. Draw the profit graph. Mark the points where the graph intersects the X axis and Y axis

d. What was the traders view when he sold the puts

e. what was the trader's opinion when he later short sold the stock