Question: Please explain the answers and show supporting calculations for each The price of Stock ABC is currently $50. A put option on 100 shares of

Please explain the answers and show supporting calculations for each The

Please explain the answers and show supporting calculations for each

The price of Stock ABC is currently $50. A put option on 100 shares of Stock ABC has an exercise price of $51 and the put premium is $3. A. What is the NET payoff from writing this option if the stock price at expiration is $49? B. What is the NET payoff from buying this option if the stock price at expiration is $58? C. What is the maximum NET payoff from writing this option? D. What is the maximum NET payoff from buying this option

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