The price of Stock ABC is currently $50. A put option on 100 shares of Stock ABC has an exercise price of $51 and the put premium is $3.
A. What is the NET payoff from writing this option if the stock price at expiration is $49?
B. What is the NET payoff from buying this option if the stock price at expiration is $58?
C. What is the maximum NET payoff from writing this option?
D. What is the maximum NET payoff from buying this option.