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An investor has bought a European put option written on May BST-30 index futures contract...

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Accounting

An investor has bought a European put option written on May BST-30 index futures contract by paying a premium of 175 TL (0.175 per share) on May 27. The index futures was trading at a value of 2810 on that day. The exercise price of that put option is 2800. Then

a) What is the gain or loss of that investor if index futures trade at 2840 on May 31?

b) What is the gain or loss of that investor if the index futures trade at 2750 on May 31?

Note: The contract multiplier for BIST-30 futures is 10

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