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You own a put option on Ford stock with a strike price of $9. When you bought the put, its cost to you was $6.

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You own a put option on Ford stock with a strike price of $9. When you bought the put, its cost to you was $6. The option will expire in exactly six months' time. a. If the stock is trading at $2 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 $22 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 o, but instead of showing payoffs, show profits. a. The payoff of the put is $. and the profit of the put is $ (Round to the nearest dollar)

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