What is the intrinsic value of the options

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Common shares of Harrington Inc. are trading at $45 per share. Put options with a strike price of $48 are priced at $5.

a) What is the intrinsic value of the options?

b) What is the time value of the option?

c) In the concluding portion of your answer, add the purpose of a put option.

Reference no: EM132491308

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