Question: You have written a put option on Johnson & Johnson common stock. The option has an exercise price of $ 1 6 0 and Johnson

You have written a put option on Johnson & Johnson common stock. The option has an exercise price of $160 and Johnson & Johnsons stock currently trades at $162.50. The option premium is $2.00 per contract.
a.What is your net profit if Johnson & Johnsons stock price increases to $170 and stays there until the option expires?
Net Profit: $ per share
b.What is your net profit on the option if Johnson & Johnsons stock price decreases to $155 at expiration of the option and the option holder exercises the option?
Net Profit: $ per share
Note: For all requirements, negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g.,32.16)

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