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Suppose that you long a put contract on an XYZ stock with a strike price of $105 and expiration date in three months.Assume that the

Suppose that you long a put contract on an XYZ stock with a strike price of $105 and expiration date in three months.Assume that the current XYZ stock price is $100.The premium for this put option is $7.00.Under what circumstances will the option be exercised?Draw a diagram showing the variation of the investors profit and loss with the stock price at the maturity of the option.

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