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You buy a put option with a strike price of $70 per underlying. If the price of the underlying at option expiration is $80, which
You buy a put option with a strike price of $70 per underlying. If the price of the underlying at option expiration is $80, which of the following is correct?
A
The option is exercised and your payoff is $10 (positive) per underlying
B
The option is exercised and your payoff is -$10 (negative) per underlying
C
The option is NOT exercised and your payoff is $10 (positive) per underlying
D
The option is NOT exercised and your payoff is $0 per underlying
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