Index XYZ is at or above 495 at expiration
Say index XYZ did not move as anticipated, but instead increased and closed at 505 at expiration. The XYZ 495 put would expire out-of-the-money and with no value, so the investor would lose the total premium of $900 initially paid for the option. This would be the limited, maximum loss no matter how far XYZ had risen, and would also be realized if at expiration XYZ closed at any point at or above the $495 strike price and the put expired with no value.
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