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A put option on the stock of Heuser Enterprises has a market price of $15. The stock sells for $38 a share, and the option has an exercise (strike) price of $30 per share.

a. What is the exercise value of the put option?

b. What is the time premium of the put option?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92360110

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