Want clarification

Fallweather Enterprises stock has an expected return of 6.5 percent and a beta of 0.5. The

market return is 12.5 percent and the risk-free rate is 2.8 percent. This stock is ______ because the CAPM return for the stock is ______ percent.

is this 7.65 undervalued or overvalued?

The maximum option payoff for buying a put is:

Unlimited

Strike price

stock price

none of these

I know payoff for a put is strike price minus premium paid so is it strike price or none of these?