You have shorted a put option on Ford stock with a strike price of $$$$12.$ When you sold$($wrote$)$ the$$ put, you received $$$$2.$ The option will expire in exactly six$$ months' time.

a$.$ If the stock is trading at $$$$7$ in six$$ months, what will your payoff$$ be$?$ What will your profit$$ be$?$

b$.$ If the stock is trading at $$$$23$ in six$$ months, what will your payoff$$ be$?$ What will your profit$$ be$?$

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.

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Part $1$

a$.$ The payoff of the short is $$$

$$

enter your response here$,$ and the profit of the short is $$$

$$

enter your response here.

$($Round to the nearest$$ dollar.$)$