You have the following portfolio:

You bought 1 share of company X at $80 per share

You bought a 1 put option with a strike price of $60 per share, the expiration date of 1st of June 2014 for which you paid $10.

What will be your profit (or loss) -excluding the cost of the put - on 1st June 2015 (at expiration) if the price of the stock is $100, $90, $80, $60, or $50?

1. Draw a diagram excluding the premium paid
2. What did you achieve by buying a put? What was your view on the stock?