Assume you have shorted a put option on Ford stock with a strike price of

$12.

The option will expire in exactly six months. a. If the stock is trading at

$5

in six months, what will you owe?b. If the stock is trading at

$23

in six months, what will you owe?

c. Draw a payoff diagram showing the amount you owe at expiration as a function of the stock price at expiration.