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# The exercise price on a put option is $40 and the price of the underlying stock is also $40. The option will expire in 55 days. The option is...

The exercise price on a put option is $40 and the price of the underlying stock is also $40. The option will expire in 55 days. The option is currently selling for $0.50.

Calculate the option's exercise value.

(Please show/explain specific steps so that I can understand)