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You own a put option on Ford stock with a strike price of $ 9. The option will expire in exactly sixmonths' time. a. If

You own a put option on Ford stock with a strike price of $ 9. The option will expire in exactly sixmonths' time.

a. If the stock is trading at $ 5 in sixmonths, what will be the payoff of theput?

b. If the stock is trading at $ 24 in sixmonths, what will be the payoff of theput?

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

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