Jamies Tesla option places him in a short position on the Tesla stock price. Is the option Jamie owns a call option or a put option? Explain your reasoning.

Considering your answer to part (a), what payoff would Jamie get from his option if the Tesla spot price on the expiration date ends up being $595?

Jamie owns an option on one share of Tesla stock, which is currently trading at $650 per share. The strike price of the option is $620. Linda is considering whether to purchase the same Tesla option that Jamie owns, with the same strike price of $620. When thinking about the uncertain Tesla stock price on the expiration date, Linda believes there are the following four possibilities with the given chances of occurring: Spot Price Chance of Occurring $580 20% $605 30% $630 35% $650 15% From Linda's perspective, what would be the fair premium (or in other words, her willingness to pay) for this Tesla option