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5. A trader sells 100 European put options (i.e., one contract) with a strike price of $50 and a time to maturity of six months.
5. A trader sells 100 European put options (i.e., one contract) with a strike price of $50 and a time to maturity of six months. The price received for each option is $4. The price of the underlying asset is $41 in six months. What is the trader's gain or loss? Show a dollar amount and indicate whether it is a gain or a loss.
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