The price of a stock currently is $67. You sell 10 put option contracts on the stock with a strike price of $70 when the option price is $3.95 - $4.05
At the expiration the stock price is $65.50.
1. What is your PAYOFF? Show it algebraically as well as geometrically.
2. What is your profit/loss, P/L? Show it algebraically as well as geometrically.