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Consider a put option with a strike price of $35 1) Suppose the stock is selling at $33 and the option is trading at $3.90.

Consider a put option with a strike price of $35

1) Suppose the stock is selling at $33 and the option is trading at $3.90. What is the intrinsic value and time value of the option?

2) Suppose the stock is selling at $40 and the option is trading at $0.50. What is the intrinsic value and time value of the option?

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