Problem $10-10($LG $10-4)$

You have written a put option on Diebold Incorporated common stock. The option has an exercise price of $$40$ and Diebold's stock currently trades at $$42\mathrm{.}50.$ The option premium is $$0\mathrm{.}65$ per contract.

a$.$ What is your net profit if Diebold's stock price increases to $$44$ and stays there until the option expires?

b$.$ What is your net profit on the option if Diebold's stock price decreases to $$37$ at expiration of the option and the option holder exercises the option?

$($For all requirements, negative amounts should be indicated by a minus sign. Round your answers to $2$ decimal places. $($e$.$g$.,32\mathrm{.}16))$

$\backslash$table$[[,,],[$a$.,$Net profit,,per share$],[$b$.,$Net profit,,per share$]]$