As a financial analyst, Janna Taylor, has been analysing options on the common stock of Spirit Electronic Group, which is currently traded for $25.96. The three month put option for Spirit stock with the exercise price of $25 is currently traded at $0.65. Taylor has been asked by her supervisor to determine the profit and the maximum loss on a protective put strategy. On the expiration date, if the stock price is $27.13, what figures should Taylor report to her supervisor?

Select one:

a.

$0.52 profit and maximum loss of $25.0

b.

$2.17 profit and maximum loss of $1.61

c.

$0.52 profit and maximum loss of $1.61

d.

$2.17 profit and maximum loss of $2.13