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Nancy, an investor in ErenCo, decides to buy a put option on ErenCo stock with a strike price (exercise price) of $9 which expires on
Nancy, an investor in ErenCo, decides to buy a put option on ErenCo stock with a strike price (exercise price) of $9 which expires on the third Friday of May, 2016. What would she have to pay in todays market for this option? In general, what determines the price an investor will have to pay for an option?
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