You are looking at the purchase of a put option. The stock is selling for $50. The exercise price is $40. The stock has a high standard deviation. It matures in 6 months and is selling for a premium of $6. What is your profit or loss if the close out price turns out to be $35?

Someone owned the stock already and paid $50. When they bought it, they wrote the option. What is there profit or loss at the time of the close out.