Compute the intrinsic value and the time value of option

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Question: A put option on Snapple Beverage has an exercise price of $30. The current stock price of Snapple Beverage is $34.25. The put option price is $7.75

a. Is this option at-the-money option, out-of-the-money option, or in-the-money option?

b. Compute the intrinsic value and the time value of this option.

Reference no: EM132063609

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