Jane purchased 100 shares of Merck & Co., at $51.74 two years ago. Merck has moved up a lot and closed at $81.54 today, she decided to purchase a put option. Today, she bought a put option with exercise price at $77.5 and an expiration date on Jan 21. 2023. The premium for the put option is $1.78.

a. With her buying the put option on the stock she has already owned, what is the name of the investment strategy that she employed?

b. What is Janes expectation about the price movement of Merck & Co.? And discuss her purpose of engaging this strategy.

c. What is her profit/loss per share on this transaction if the stock price at expiration is (1) $55, (2) $70, and (3) $90?