Consider a put option selling for $$4$ in which the exercise price is $$60$ and the price of the underlying is $$62.$Determine the value at expiration and the profit for the buyer under the following outcomesi. The price of the underlying at expiration is $$64$ii$.$ The price of the underlying at expiration is $$50$Determine the value at expiration and the profit for the seller under the following outcomes.i$.$ The price of the underlying at expiration is $$51$ii$.$ The price of the underlying at expiration is $$68$Myles Munroe holds $600$ shares of Jamaica Public Service Company LTD $($JPS$).$He bought the stocks several years ago at $$48\mathrm{.}50,$ and the shares are now trading at $$75.$ Myles is concerned that the market is beginning to soften. He doesn't want to sell the stock, but he would like to be able to protect the profit he's made. He decides to hedge his position by buying $6$ puts on JPS$.$ The $3-$month put carry a strike price of $$75$ and fetch a fee of $$250$ per put.How much profit or loss will Myles make on this deal if the price of JPS does indeed drop to $$60$ a share by the expiration date on the puts? How would he do if the price of the stock kept going up and reached $$90$ a share by the expiration date?$($iii$)$ What do you see as the major advantages of using puts as hedge vehicles?