You have written a put option on Diebold Inc. common stock. The option has an...
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Finance
You have written a put option on Diebold Inc. common stock. The option has an exercise price of $30 and Diebolds stock currently trades at $32.50. The option premium is $.85 per contract.
a. What is your net profit if Diebolds stock price increases to $34 and stays there until the option expires?
b. What is your net profit on the option if Diebolds stock price decreases to $27 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., 32.16))
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