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What is the intrinsic value of the put

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Reference no: EM132745081

Problem 1: An American-style put option with six months to maturity has a strike price of $40. The underlying stock now sells for $36. The put premium is $3. What is the intrinsic value of the put?

Select one:

Option 1: $4

Option 2: $6

Option 3: $3

Option 4: $40

Option 5: $38

Reference no: EM132745081

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