What was the investor's profit from the sale of ABC after exercising the put option?

To determine the investor's profit from the sale of ABC after exercising the put option, it is essential to consider the mechanics of how a put option works and the specific details involved in the transaction.

A put option gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset (in this case, ABC stock) at a predetermined price, known as the strike price, within a certain time frame. When an investor exercises the put option, they sell the shares at the strike price.

In the scenario where the profit is calculated to be $1,100, this suggests that after exercising the put option, the trader sold the stock at a strike price that provided a substantial return compared to the initial investment. This value also accounts for the costs associated with the put option, such as the premium paid for purchasing the option itself.

To arrive at the profit of $1,100, it is likely that the total revenue from exercising the option (the strike price multiplied by the number of shares sold) minus the initial investment (including the premium paid for the option) resulted in this specific profit figure. Therefore, it shows that the exercise of the option was favorable, with the market price declining enough for the put option to