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A 3-month put option on ABC stock with a strike price of $30 is currently trading for $.75. The stock is currently trading at $30.

  1. A 3-month put option on ABC stock with a strike price of $30 is currently trading for $.75. The stock is currently trading at $30.

What is Sellers maximum profit?

  1. What does he or she expect will happen to the stock price?
  2. Is the option in the money from the buyers perspective?
  3. What is the buyers maximum profit?
    1. What does he or she expect will happen to the stock price?

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