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Intermediate Finance Question:
On March 10, the closing exchange rate of DKK was $0.1649 ($0.1649/DKK). Puts which would mature on June 19 with a strike price of $0.176/DKK were traded at $0.05 premium.
Questions:
a) The intrinsic value of the put on March 10 was $____.
b) The break-even point is $_________ for the buyer of the put.
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