Investor owns 500 shares of company Z which are currently trading at $80 per share. Investor is concerned with preservation of unrealized gains and purchases a put option for 500 shares with a $75 strike price for $150. If a stock price goes up to $105 per share, what is investors gain or loss?

• $12,350 gain
• $150 loss
• $500 gain
• $2,650 gain

Please show work!