Kerry bought 20 put options on the stock of Global Consolidated Megacorp. The stock currently sells for $17.96 per share, and the strike price is $17.50. The option premium was $5.18.

a. Do these options give Kerry the right to buy or sell the companys shares? How many shares does she have the right to buy/sell?

b. Calculate the total amount she paid for these options.

c. Calculate her profi t or loss if the price rises to $22.50.

d. Calculate her profi t of loss if the price rises to $20.00.

e. Calculate her profi t or loss if the price drops to $15.00.