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Section 1 A) What is the intrinsic value of a put option? (1 mark) B) For out-of-the-money options, what are their intrinsic values? (1 mark)

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Section 1 A) What is the intrinsic value of a put option? (1 mark) B) For out-of-the-money options, what are their intrinsic values? (1 mark) C) For out-of-the-money options, how can we obtain their time values? (1 mark) D) Explain why futures prices on consumption commodities only have upper bounds. (2 marks)

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