In January $2024,$ Amazon.com shares are priced at $$80$ a share. You believe that they

are overvalued and are worth only $$30$ a share. June $2024$ put options on a strike price

of $$60$ a share are currently valued at $$5.$ Each put contract is based on $100$ shares.

$($i$)$ What is the intrinsic value of the put option per share?

$($ii$)$ What is the time value of the put option per share?

$($iii$)$ If we arrive at expiry in June and you are proved correct with Amazon shares selling

for $$30,$ what is your net dollar profit on a single put options contract in dollars bearing

in mind the put option is based on a contract of $100$ shares? Show your workings in

full $)$

$($iv$)$ What is your net dollar profit $(+)$ or loss $(-)$ as a holder of the put contract $($based on

a contract size of $100$ shares$)$ if we arrive at expiry in June and you are wrong and

Amazon shares are selling for $$100?$ Show your workings in full