One month ago you purchased a put option on the S&P500 index with an exercise

price of $910 at $1.00. Today is the expiration date and the index is at $900.96. Will

you exercise the option? What will be your prot?

2. Suppose that you purchased a call option with a strike price of $30 and paid a premium

of $6.

(a) Draw a graph of your payoff and profit would be at expiration for stock prices in

the range of $10 to $70.

(b) Now assume that instead of buying the call you wrote the option. Draw a graph

of your payoff and profitt would be from this perspective.