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How much is the value of this put option

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Reference no: EM132775869

Suppose a PUT option contract has a strike price of $20 and the underlying stock price $25.

A). Would you exercise it before expiration? How much is the value of this PUT option? (show your calculations).

B). In the same example, suppose that the underlying stock price is $15. Would you exercise it before expiration? How much is the value of this PUT option? (show your calculations).

Reference no: EM132775869

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