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You own a European put option with 1 month to expiration and with strike price 50 , the stock is currently trading at 45 ,

You own a European put option with 1 month to expiration and with strike price 50 , the stock is currently trading at 45 , and the continuously compounded riskless interest rate is 5%. The current price of the option is 7 . What is the intrinsic value of the put? 75504550e(.051)4550e(.05/12)45

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