Chapter 15, Problem 8PS

The following diagram shows the value of a put option at expiration:

Ignoring transaction costs, which of the following statements about the value of the put option at expiration is true? $\left(\text{LO 15}-\text{1}\right)$
a. The expiration value of the short position in the put is $\$\text{4}$ if the stock price is $\$\text{76}$ .
b. The expiration value of the long position in the put is $-\$\text{4}$ if the stock price is $\$\text{76}$ .
e. The long let has a positive expiration value when the stock price is below $\$\text{8}0$ .
d. The value of the short position in the put is zero for stock prices equaling or exceeding $\$\text{76}$ .