Question: ? You expect Company XYZ's stock prices to decrease below the current stock price level of $50. In order to take advantage of this expectation,

You expect Company XYZ's stock prices to decrease below the current stock price level of $50. In order to take advantage of this expectation, you purchase a put option on Company XYZ's stock, with an exercise price of $45 and a premium of $3 per share. Just before the expiration, stock price drops to $40. Should you exercise the put option? What will the total payoff per share be? O Do not exercise, total payoff = - $2 per share O Do not exercise, total payoff =-$1 per share O Exercise, total payoff = $1 per share O Exercise, total payoff - $1 per share Exercise, total payoff - $2 per share

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