Henry Williams, CFA, is calculating the payoff for two put options on the British pound with different exercise prices. The first put option, p₁, has an exercise price of 1.25 while the second put option, p₂, has an exercise price of 1.75. Both options are on 100,000 British pounds. If the underlying is selling at 1.438 at expiration, what is the payoff for each put option?

Group of answer choices

p₁:18,800, p₂: 0

p₁: 18,800, p₂: 31,200

p₁:0, p_2: 31,200