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Q-I i. Suppose you short two European put option on XYZ Inc. stock. The current stock price is $104, and the exercise price is $100.

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Q-I i. Suppose you short two European put option on XYZ Inc. stock. The current stock price is $104, and the exercise price is $100. The premium of the option is $9, and the maturity of the option is 2 months. If the stock price at maturity is 897, what is your payoff and profit? Show ii. What is the break-even point (BEP)? (BEP is the stock price that makes your profit zero!) Calculate/Show! iii. Graph the payoff function and profit function (P/L) of the short put option position Denote the underlying asset price by S and exercise price by K. Show all the results in i above. Also, show the BEP on the graph. (Label the axis: No labeling, no points!) iv. What was your expectation about the underlying stock in taking the short put option position

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