Melissa purchased a put option on Netflix. The put premium was $10. The strike price is $345. When she purchased the option Netflix stock was trading at $365. The option matured today and the stock price is $338. What is her profit/loss? Should she exercise her option?

• $8 gain; yes she should exercise her put option

• $7 profit; yes she should exercise her put option

• $7 profit; no she should not exercise her put option

• -$10 loss; no she should not exercise her put option

• -$3 loss; yes she should exercise her put option