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Suppose that a June put option on a stock with a strike of $60 costs $4 and is held until June. Under what circumstances will

Suppose that a June put option on a stock with a strike of $60 costs $4 and is held until June. Under what circumstances will the option be exercised? Under what circumstances will the holder of the option make a gain? Under what circumstances will the seller of the option make a gain? What is the maximal gain that the seller of the option can make? Under what circumstances will the seller of the option make the maximal gain?

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