A European put option on stock conveys the right to sell the stock at a pre-specified price, called the exercise price, at the maturity date of the option. Te value of this put at maturity is (exercise price stock price) or $0, whichever is greater. Suppose the exercise price is $100 and the underlying stock trades in ticks of $0.01. At any time before maturity, the terminal value of the put is a random variable.

A Describe the distinct possible outcomes for terminal put value. (Tink of the puts maximum and minimum values and its minimum price increments.)

B Is terminal put value, at a time before maturity, a discrete or continuous random variable?

C Letting Y stands for terminal put value, expressed in standard notation the probability that terminal put value is less than or equal to $24. No calculations or formulas are necessary.