Answer: 50.

## Explanation For a put option seller (writer), the profit calculation is: **Profit for put seller = Put premium received - Max(0, Exercise price - Spot price at expiration)** Given: - Put price (premium received) = 50 - Exercise price = 1,640 - Spot price at expiration = 1,670 **Step 1: Determine if the put option is exercised** - For a put option, the buyer exercises when the spot price is **below** the exercise price - Spot price (1,670) > Exercise price (1,640) - Since spot price is higher than exercise price, the put option is **out-of-the-money** and will **NOT be exercised** **Step 2: Calculate the seller's profit** - Since the option is not exercised, the seller keeps the entire premium - Profit = Put premium received = 50 **Step 3: Verify with the formula** - Max(0, Exercise price - Spot price) = Max(0, 1,640 - 1,670) = Max(0, -30) = 0 - Profit = 50 - 0 = 50 **Key points:** - Put sellers profit when the underlying price stays above the exercise price - The maximum profit for a put seller is limited to the premium received - In this case, since the spot price (1,670) is higher than the exercise price (1,640), the option expires worthless and the seller keeps the full premium of 50

Author: LeetQuiz .