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You have shorted a put option on Ford stock with a strike price of $14. When you sold (wrote the put, you received $2. The

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You have shorted a put option on Ford stock with a strike price of $14. When you sold (wrote the put, you received $2. The option will expire in exactly six months time. a. If the stock is trading at $7 in six months, what will your payoff be? What will your profit bo? b. If the stock is trading at $25 in six months, what will your payoff be? What will your profit be? c. Draw a payoff diagram showing the value of the put at expiration as a function of the stock price at expiration d. Redoc, but instead of showing payoffs, show profits a. The payoff of the short is and the profit of the short is $ (Round to the nearest dollar.)

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