1) Todays price for a share of Apple stock is 80 with an 80 put. At expiration, the stock is priced at 85. The price of the put is 4. Would the put option be used?

Yes, the buyer of the put would make more profit if they sold the stock at 80 rather than expiration price.

Yes, the put option would be used because it is a contract, so they HAVE to sell the stock for 80.

No, the stock at expiration is higher than the put value so they would get more profit if they did not use it.

No, because they can still sell the stock at 80 even if the price is 85 at expiration.

2. Today's stock price 50, 95 put, on the expiration day, stock price is 70. Price of the put is 48. What is the net profit or loss for the buyer? Is the put option used?

No, profit of 25.

Yes, profit of 23.

Yes, loss of 23.

No, loss of 25.