The Price of a Stock on February 1 Is $48

Multiple Choice

The price of a stock on February 1 is $48.A trader sells 200 put options on the stock with a strike price of $40 when the option price is $2.The options are exercised when the stock price is $39.The trader's net profit or loss is

A) Loss of $800
B) Loss of $200
C) Gain of $200
D) Loss of $900