Multiple Choice
A stock has a price of $68 per share. A two-month put (strike price = $70) on the stock is available at a $6 premium. The intrinsic value on the put is:
A) $0 and its time value is $6.
B) $0 and its time value is $4.
C) $2 and its time value is $4.
D) $4 and its time value is $2.
Correct Answer:
Verified
Correct Answer:
Verified
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