Peter holds a European put on Nike stock with a strike price of $100 that expires in 1 year. Suppose that the price of Nike stock in 1 year is $70 and that Peter will make the exercise decision optimally. Which of the following statements is correct?
A. Peter will choose to exercise in 1 year and will receive a payoff in 1 year of $70 from holding the option.
B. Peter will choose to exercise in 1 year and will receive a payoff in 1 year of $30 from holding the option.
C. Peter will choose not to exercise in 1 year and will receive a payoff in 1 year of $30 from holding the option.
D. Peter will choose not to exercise in 1 year and will receive a payoff in 1 year of $0 from holding the option.
E. There is not enough information to determine whether Peter will exercise the put option, or what his payoff will be in 1 year from holding the put option.