You own a put option on Ford stock with a strike price of $8. When you bought the put, its cost to you was $3. The option will expire in exactly six months' time. a. If the stock 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 $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, but instead of showing payoffs, show profits. CE a. The payoff of the put is $, and the profit of the put is $ (Round to the nearest dollar.) b. The payoff of the put is $, and the profit of the put is $. (Round to the nearest dollar.) c. Choose the correct diagram below. OA OB. 20 20 10- 104 Value of the Put ($) 0- Value of the Put ($) 0+ 10 20 30 40 50 60 10 20 30 40 50 60 -10 -101 -20- Stock Price at Expiration ($) Stock Price at Expiration (S) ( OC. OD 20 a 20 10- 510 of the Put($) V of the Put($) 0- 10 20 30 40 50 60 10 20 30 40 50 60 G d. Choose the correct diagram below. A. B. 20 209 10- 10- Profit of the Put ($) 0- 10 20 30 40 50 100 10 20 30 40 50 60 10- 10- -20 Stock Price at Expiration ($) = Stock Price at Expiration ($) O C. OD. 20 20- 10- 10- Profit of the Put ($) Profit of the Put ($) ZU 30 40 50 160 TU 20 30 40 50 60 -20 -20% Stock Price at Expiration ($) Stock Price at Expiration ($)