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 $$3$ 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 $$21$ 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 $c_1$ but instead of showing payoffs, show profits.