You bought an American put option some time ago. Today it has one year left to expiration. Interest rate is 10% per year. Annual compounding applies. Strike price is $100, and stock price is $5.

If you wait until expiration day to exercise the put option, what is the maximum amount it can be worth then?

What is the present value of the amount you found in part a?

If you exercise the option now, how much is it worth?

Would you rather exercise it now or wait until expiration?