Please show all calculations. Assume that you own a put option on Xeta stock with a strike price of $20. when you bought the put, it costs to you was $4. The option will expire in exactly six months' time.
a) if the stock is trading at $18 in six months, what will be the payoff of the put? what will be the profit of the put?
b) if the stock is trading at $33 in six months, what will be the payoff of the put? what will be the profit of the put?