You own a put option on Ford stock with a strike price of $$$$9.$ When you bought the$$ put, its cost to you was $$$$2.$ The option will expire in exactly six$$ months' time.

a$.$ If the stock is trading at $$$$4$ in six$$ months, what will be the payoff of the$$ put? What will be the profit of the$$ put?

b$.$ If the stock is trading at $$$$20$ in six$$ months, what will be the payoff of the$$ put? What will be the profit of the$$ put?

c$.$ Draw a payoff diagram showing the value of the put at expiration as a function of the stock price at expiration.

d$.$ Redo$$ c$,$ but instead of showing$$ payoffs, show profits.

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Part $1$

a$.$ The payoff of the put is $$$

$$

enter your response here$,$ and the profit of the put is $$$

$$

enter your response here.

$($Round to the nearest$$ dollar.$)$