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A speculator writes a put option which can be exercised on or before expiration for a premium of $4, with an exercise price of $30. The stock is presently priced at $29, and rises to $32 before the expiration date without ever trading below $29. What is the profit per unit to the writer if the option is exercised at the owner's ideal time?

  • -$4
  • -$3
  • -$2
  • $2
  • $3

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