Tom Gettback Buys 100 Shares of Johnson Walker Stock for $87.00

Multiple Choice

Tom Gettback buys 100 shares of Johnson Walker stock for $87.00 per share and a three-month Johnson Walker put option with an exercise price of $105.00 for $20.00. What is his dollar gain if the stock is selling for $80.00 per share at expiration?

A) $200 loss
B) $700 loss
C) $200 gain
D) $700 gain
E) $900 gain