1.Which is correct regarding an American put option? a. It cannot be worth less than S - X b. It cannot be worth more than S PV(X) c. It cannot be exercised until expiration day d. It is a contract to sell the underlying stock at the strike price 2.

One year ago, you bought a put option with strike price $42 and one year to expiration. Option premium was $10. Ignore the interest rate. Today is the expiration day, and you still have an open long position in the put. The underlying stock is trading at $30. Your profit is

	a.	0
	b.	2
	c.	12
	d.	-12