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The BWS Corporation stock is selling at $50 a share today.
a. Calculate the value of a BWS put option if its exercise price is $40 and it expires today.
b. What can you say about the value of a BWS put option if its exercise price is $40 and it expires in six months?
c. Calculate the value of a BWS put option if its exercise price is $60 and it expires today.
d. What can you say about the value of a BWS put option if its exercise price is $60 and it expires in six months?
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