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You Bought an American put option a year back for $ 6 . The time - to - maturity was 1 year, stock was trading
You Bought an American put option a year back for $ The timetomaturity was year, stock was trading at $ and you chose to buy an outofthemoney option with exercise price $ months has passed since you bought the option, so time remaining to maturity Assume discreetly compounded risk free rate over next months not annualizedcontinuous compounded rate Will you exercise the option today or will you wait till maturity when you expect the stock price to be zero?
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