Problem:
Three months ago, Central Supply stock was selling for $51.40 a share. At that time, you purchased five put options on the stock with a strike price of $52 per share and an option price of $0.60 per share. The option expires today when the value of the stock is $42.70 per share.
Required:
Question: What is your net profit or loss on this investment? Ignore trading costs and taxes.
Note: Show all workings.