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If Cathy were to buy a put option to sell one unit of RHC at a premium of $8.10 with an exercise price of $50.00

If Cathy were to buy a put option to sell one unit of RHC at a premium of $8.10 with an exercise price of $50.00 and a current spot price of $53.50, calculate the time value of the option. (2 Marks) Do not include a $ Sign

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