You sold a put option contract with a strike price of $40 and an option premium of $1.25. What will happen when the current market price of the stock falls to $38? The other party may exercise her right and you have to buy the stock at $40 The other party is obligated to buy the stock at $38 Nothing will happen since the market price is below the strike price You will exercise your right since the market price is below the breakeven price