You have written a put option on Diebold Incorporated common stock. The option has an...
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You have written a put option on Diebold Incorporated common stock. The option has an exercise price of $37 and Diebold's stock currently trades at $39.50. The option premium is $0.50 per contract. a. What is your net profit if Diebold's stock price increases to $41 and stays there until the option expires? b. What is your net profit on the option if Diebold's stock price decreases to $34 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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