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Assume you have shorted a put option on Ford stock with a strike price of 10. The opticn wil expire in exactly six months' time.

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Assume you have shorted a put option on Ford stock with a strike price of 10. The opticn wil expire in exactly six months' time. a. If the stock is trading at $8 in six months, what will you owe? b. If the stock is trading at $21 in six months, what will you owe? c. Drai a payof diagram showing the amount you onwe at expiration as a function of the stock price at expiration a. If the stock is trading at $8 in six months, what will you owe? If the stock is trading at $8 in six months, you will oRound to the nearest do lar) b. If the stock is trading at $21 in six months, what wil you owe? if the stock is trading at $21 in six months, you will owe $L. (Round to the nearest dolar) c. Draw a payoff diagram showing the amount you owe at expiration as a function of the stock price at expiration Which of the graphs below best represents the payoff diagram showing the amount you owe at expiration as a function of the stock price at expiration? (Select the best choice below.) 24 24 12 10 15 20 25 30 35 40 45 50 55 60 510 15 20 25 35 40 45 505560 -1 Click to select your answer(s)

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