Dorothy Santosuosso does a lot of investing in the stock market and is a frequent user of​ stock-index options. She is convinced that the market is about to undergo a broad retreat and has decided to buy a put option on the​ S&P 100 Index. The put carries a strike price of 905 and is quoted in the financial press at $14.50. Although the​ S&P Index of 100 stocks is currently at 900.00​, Dorothy thinks it will drop to 850 by the expiration date on the option. How much profit will she​ make, and what will be her holding period return if she is​ right? How much will she lose if the​ S&P 100 goes up​ (rather than​ down) by 25 points and reaches 925 by the date of​ expiration? The profit from this investment would be ​$ . ​(Round to the nearest​ cent.)
If she is​ right, her holding period return will be %. ​(Round to the nearest whole​ percent.)
If the​ S&P 100 goes up​ (rather than​ down) by 25 points and reaches 925 by the date of​ expiration, she will lose ​$ .​(Round to the nearest​ cent.)