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A trader today (at time t=0) buys a European put option on a stock with a strike price of $30 and maturity T>0. The price

A trader today (at time t=0) buys a European put option on a stock with a strike price of $30 and maturity T>0. The price of the European put option is $4.

Under what circumstances does the trader make a gain at time T? And what is the maximum possible loss for the trader?

Provide short answers.

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