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Docothy Santosuosso does a lot of investing in the stock market and is a frequent user of stock-index cptions. She is convinced that the market

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Docothy Santosuosso does a lot of investing in the stock market and is a frequent user of stock-index cptions. She is convinced that the market is about to undergo a broad retreat and has decided to buy a put option on the SSP 100 index. The put carries a strike price of 909 and is quoted in the financial pross at $14.58. Altheugh the S8P Index of 100 stocks is currently at 896.48 , Dorothy thinks it will drop to 859 by the expiration date on the cotion. How much profit wil she make, and what will be her holding period roburn if she is right? How much wil ahe liote if the SsP. 100 goes up (rather than down) by 25 points and reaches 921 by the date of expration? The profi from this investment woud be : (Round to the nearest cent)

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