Question: Answer the questions below given the following information for a put option : Current stock price: $45 Strike price of a three month put: $52

Answer the questions below given the following information for a put option :

Current stock price: $45

Strike price of a three month put: $52

Market price of the put: $9

a. What is the intrinsic value of the put option?

b. What is the time premium paid for the put?

c. What is the maximum possible loss from buying the put?

d. What is the maximum profit the buyer of the put can earn?

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