8.) Suppose the price of a share of Google stock is $300. An April put option on Google stock has a premium of $8 and an exercise price of $305. Ignoring commissions, the holder of the option will earn a profit if the price of the share

Multiple Choice

a.) increases to $314.

b.) decreases to $296.

c.) increases to $306.

d.) decreases to $292.

e.) None of the options are correct.

Side note: option d is incorrect.