Suppose you believe that Du Pont's stock price is going to decline from its current level of $82 sometime during the next 5 months. For $5.25 you could buy a 5-month put option giving you the right to sell shares at a price of $85 per share. If Du Pont's stock price actually dropped to $79, what would be your net profit or loss (after transactions costs but before taxes)?
a. Lost $1.25
b. Made $.75
c. Made$1.75
d. Made $3