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A 6-month put option on Smith Corp.'s stock has a strike price of $45 and sells in the market for $8.90. Smith's current stock price

  1. A 6-month put option on Smith Corp.'s stock has a strike price of $45 and sells in the market for $8.90. Smith's current stock price is $40. What is the option premium?

a. $3.90

b. $4.90

c. $5.39

d. $5.93

e. $6.52

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