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You have written a put option on Diebold Incorporated common stock. The option has an exercise price of $45 and Diebolds stock currently trades at
You have written a put option on Diebold Incorporated common stock. The option has an exercise price of $45 and Diebolds stock currently trades at $47.50. The option premium is $0.90 per contract. a. What is your net profit if Diebolds stock price increases to $49 and stays there until the option expires? b. What is your net profit on the option if Diebolds stock price decreases to $42 at expiration of the option and the option holder
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