Question: Q1. A trader buys a IBM put on a share for $3. The stock price is $42 and the strike price is $40. Under what

Q1. A trader buys a IBM put on a share for

Q1. A trader buys a IBM put on a share for $3. The stock price is $42 and the strike price is $40. Under what circumstances will the option be exercised? Under what circumstances does the trader make a profit

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