A 6-Month Put Option on Smith Corp

question 1

Multiple Choice

A 6-month put option on Smith Corp.'s stock has a strike price of $46.00 and sells in the market for $8.50.Smith's current stock price is $40.00.What is the option premium? Do not round your intermediate calculations.
?

• A) $2.90
• B) $2.50
• C) $2.18
• D) $2.28
• E) $2.93

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