Please answer the following questions:

1. You write a put option with X=$50 and X=$60. One put price is selling for $3. The options are on the same stock and have the same maturity date. What is the break even point for this strategy? How much is profit/loss when stock price is $7?

2. A put option on Snapple Beverage has an exercise price of $30. The current stock price of Snapple Beverage is $34.25. The put option is $8.75. a. is this an at-the-money option, out-of-the-money option, or in-the-money option? b. compute the intrinsic value and the time value of this option.