Question: **Can you please explain step by step on how to do this question*** and please show formulas used so I can understand how to do

**Can you please explain step by step on how to do this question*** and please show formulas used so I can understand how to do it on my own. thank you.

An investor writes a December put option with a strike price of $30. The price of the option is $4. Under what circumstances does the investor make a gain?

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