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ou have written a put option on Diebold Inc. common stock. The option has an exercise price of $28 and Diebolds stock currently trades at
ou have written a put option on Diebold Inc. common stock. The option has an exercise price of $28 and Diebolds stock currently trades at $30.50. The option premium is $0.75 per contract. a. What is your net profit if Diebolds stock price increases to $32 and stays there until the option expires? b. What is your net profit on the option if Diebolds stock price decreases to $25 at expiration of the option and the option holder exercises the option?
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