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 $ and Johnson & Johnsons stock currently trades at $ The option premium is $ per contract.
aWhat is your net profit if Johnson & Johnsons stock price increases to $ and stays there until the option expires?
Net Profit: $ per share
bWhat is your net profit on the option if Johnson & Johnsons stock price decreases to $ 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 decimal places. eg
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