As a financial analyst, Gretchen Miller, has been analysing options on the common stock of

Spirit Electronic Group, which is currently traded for $25.96. The three month put option for

Spirit stock with the exercise price of $25 is currently traded at $0.65. Miller has been asked

by her supervisor to determine the profit and the maximum loss on a protective put strategy.

On the expiration date, if the stock price is $27.13, what figures should Miller report to her

supervisor?

A.

$2.17 profit and maximum loss of $1.61

B.

$0.52 profit and maximum loss of $25.0

C.

$0.52 profit and maximum loss of $1.61

D.

$2.17 profit and maximum loss of $2.13