Determining the option premium


A 6-month put option on Smith Corp.'s stock has a strike price of $47.50 and sells in the market for $8.90. Smith's current stock price is $41. What is the option premium?

a)$2.20
b)$2.40
c)$2.55
d)$2.35
e)$2.70

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Finance Basics: Determining the option premium
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