Answer: 30.

## Explanation When an investor **sells** a put option, they receive the premium upfront. For a European put option, the seller's profit at expiration depends on whether the option is exercised. **Given:** - Put price (premium received) = 30 - Exercise price = 600 - Underlying price at expiration = 620 **Analysis:** 1. **Put option payoff for the seller:** - The buyer of the put option has the right to sell the underlying at the exercise price (600). - The buyer will exercise the option only if the market price is **below** the exercise price. - At expiration, market price (620) > exercise price (600), so the put option is **out-of-the-money**. - The buyer will **not exercise** the option. 2. **Seller's profit calculation:** - Seller received the premium of 30 upfront. - Since the option is not exercised, the seller has no obligation to buy the underlying. - Profit = Premium received = 30 **Why other options are incorrect:** - **Option A (10):** This would be incorrect as it suggests some net payoff from exercise, but there is none. - **Option B (20):** This would be incorrect as it suggests a partial premium or some other calculation error. **Key Concept:** For a put option seller, maximum profit occurs when the option expires worthless (out-of-the-money), and the profit equals the premium received. The seller's profit is limited to the premium, while potential losses can be substantial if the underlying price falls significantly.

Author: LeetQuiz .