Annika has purchased put options on 1000 shares of Amazon stock with a striking price of $270 per share. The option premium was $6.00 per share.
a. Compute Annika's profit or loss if the market value of Amazon's stock is $280 at expiration.
b. Compute Annika's profit or loss if the market value of Amazon's stock is $260 at expiration.
c. Compute Annika's profit or loss if the market value of Amazon's stock is $272 at expiration.
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