Question $5$

$10$ pts

Suppose that a September put option with a strike price of $$105$ costs $$7\mathrm{.}0.$ Under what circumstances will the seller $($or writer$)$ of the option earn a positive or zero profit? Let S equal the price of the underlying.

$S105$

$S98\mathrm{.}0$

$S105$

$S112\mathrm{.}0$

$S98\mathrm{.}0$