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An European put option with strike of $100 and maturity of 1 year has a value of $15. The forward price of the security at the same maturity is at $90.

(a) Based on the forward price, is this put option in the money, out of the money or at the money?

(b) What are the intrinsic value and time value of the option?

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  • Category:- Basic Finance
  • Reference No.:- M952079

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