Suppose today you buy a 6-month European put option on a stock TTR for $5. The strike price of the put option is $120. The stock is trading at $122 today.

Now suppose that 3 months later the stock is at $130. What happens?

a. The option gives you a payoff of $10.

b. The option gives you a profit of $5.

c. You can sell the option.

d. You may exercise the option.