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You have shorted a put option on Ford stock with a strike price of $9. When you sold (wrote) the put, you received $5. The
You have shorted a put option on Ford stock with a strike price of $9. When you sold (wrote) the put, you received $5. The option will expire in exactly six months' time.
a. If the stock is trading at $2 in six months, what will your payoff be? What will your profit be? Round to nearest dollar
b. If the stock is trading at $19 in six months, what will your payoff be? What will your profit be? Round to nearest dollar
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