A Speculator May Write a Put Option on Stock with an Exercise

A speculator may write a put option on stock with an exercise price of $15 and earn a $3 premium only if he thought

A) the stock price would stay above $12.
B) the stock volatility would increase.
C) the stock price would fall below $18.
D) the stock price would stay above $15.
E) the stock price would rise above $18 or fall below $12.

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