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You have written a put option on Diebold Incorporated common stock. The option has an...

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Finance

You have written a put option on Diebold Incorporated common stock. The option has an exercise price of $35 and Diebolds stock currently trades at $37.50. The option premium is $1.10 per contract. a. What is your net profit if Diebolds stock price increases to $39 and stays there until the option expires? b. What is your net profit on the option if Diebolds stock price decreases to $32 at expiration of the option and the option holder exercises the option?

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