You have written a put option on Diebold Inc. common stock. The option has an exercise price of $28, and Diebolds stock currently trades at $30.50. The option premium is $0.75 per contract.

- What is your net profit if Diebold's stock price increases to $32 and stays there until the option expires? - What is your net profit on the option if Diebold's stock price decreases to $25 at the option's expiration and the option holder exercises the option?

[Please, describe the process and formulas. Thank you! :) ]