George bought a European put option contract in UWY stock from Julie with a striking price of $15.83 per share. He paid $1.03 per share for

this option contract. The size of the contract was 100 shares.

7. Suppose the market price of UWY stock at expiration is $18.01. Assume

that both George and Julie are rational in the sense that if they could

choose to exercise the option, then they would do so rationally. Assume

that neither George nor Julie have any UWY stock at expiration, nor do

they want to hold any UWY stock so that they will buy or sell stock

before or after any trading by the option to return to their zero

holding of stock UWY. State the net profit per share that Julie would

make on this option (If Julie loses money, show it as a negative

number). The "net" means taking into account the premium on the option.

8. Suppose that instead of $18.01, the market price of UWY stock at

expiration is $15.96. Assume again the George and Julie are both

rational and neither hold nor want to hold any UWY stock. State the net

profit per share that Julie would make on this option.