Question: Question 1 You bought a put option with a strike price of $82.50 and you paid a premium of $8.90. What price of the underlying

Question 1

You bought a put option with a strike price of $82.50 and you paid a premium of $8.90.

What price of the underlying asset would allow you to break even at expiration of the option contract?

Question 2

You bought one share of GE for $23.05. You want to hedge this position by buying a put option with a $20 strike price. This option is selling for $2.90. What is your profit if at expiration the stock is trading at $34.75?

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