Question: Question 1: (4 points) These are put options for the same underlying asset and same maturity. One put option PU has exercise price of $120

Question 1: (4 points) These are put options for the same underlying asset and same maturity. One put option PU has exercise price of $120 and the other put option P2 has exercise price of $150. Also, one put sells for $8 and the other sells for $10. Select the prices for Pl and P2 from the given two values. Explain your argument for the price selection with the help of payoff and profit diagrams of the put options

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