Question: (a) A trader sells a put option with a strike price of $48 for $2.50. What is the trader's maximum gain and maximum loss? How

(a) A trader sells a put option with a strike price of $48 for $2.50. What is the trader's maximum gain and maximum loss? How does your answer change if it is a call option?

(b) A trader buys a call option with a strike price of $52 for $3. Does the trader ever exercise the option and lose money on the trade? Briefly explain your answer.

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