1. Suppose you believe that the price of a particular underlying, currently selling at $99, is going to decrease considerably in the next six months. You decide to purchase a put option expiring in six months on this underlying. The put option has an exercise price of $95 and sells for $5.
   1. Determine the profit under the following outcomes for the price of the underlying six months from now:
      1. $100
      2. $95
      3. $93
      4. $90
      5. $85
   2. Determine the breakeven price of the underlying at expiration. Check that your answer is consistent with the solution to Part A of this problem