Question: You have bought Thames put options with an exercise price of $3.80. At the time of purchase the share price was $3.95 and you paid

You have bought Thames put options with an exercise price of $3.80. At the time of purchase the share price was $3.95 and you paid $0.26 for the option.

Is the option in the money or out of the money?

If the share price is $3.58 at the expiry of the option, what is the gain or loss from the option position? Why has this outcome happened?

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