Answer A to D

Problem 13-4 Question Help You own a put option on Ford stock with a strike price of $11. When you bought the put, its cost to you was $2. The option will expire in exactly six months' time. a. If the stock is trading at $4 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 c, but instead of showing payoffs, show profits. and the profit of the put is $ a. The payoff of the put is $ (Round to the nearest dollar.)