You have shorted a put option on Ford stock with a strike price of $15....
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You have shorted a put option on Ford stock with a strike price of $15. When you sold (wrote) the put, you received $4. The option will expire in exactly six months' time. Tesi my was a. If the stock is trading at $Just months, wna Will you payoff be? What will u promwe b. to trung auza payuil we? What will your proul de? c. Draw a payoff diagram showing the value of the put at expiration as a function of the stock price at expiration. d. Redo c, but instead of showing payoffs, show profits
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