Suppose you write the following put option (1 option, not 1 contract containing 100 options) What is the payoff and profit at expiration if the stock price is $40 Put Strike Symbol Last Change 40 ABC230621P00040000 7 1 2 a payoff is 5 00 profit is 2 00 b payoff is 5 00 profit is 2 00 c payoff is 0 profit is 0 d payoff is 0 profit is 7 00 e payoff is 0 00 profit is 7

Question: Suppose you write the following put option (1 option, not 1 contract containing 100 options). What is the payoff and profit at expiration if the

Suppose you write the following put option (1 option, not 1 contract containing 100 options). What is the payoff and profit at expiration if the stock price is $40?

Put
Strike	Symbol	Last	Change
40	ABC230621P00040000	7	1.2

a. payoff is -5.00; profit is -2.00

b. payoff is -5.00; profit is 2.00

c. payoff is 0; profit is 0

d. payoff is 0; profit is -7.00

e. payoff is 0.00; profit is 7

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