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


Answer: B

Business

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