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You own a put option on Ford stock with a strike price of $10. When you bought the put it cost you $2. The option
You own a put option on Ford stock with a strike price of $10. When you bought the put it cost you $2. The option will expire in 6 months time.
A) if the stock is trading at $8 in six months what will the payoff be and what will the profit be of the put
B) if the stock is trading at $23 in six months what will the payoff and profit be of the put
Please draw diagram showing payoffs and another one showing profits
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