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Question No) 05 This is a subjective question, hence you have to write your answer in the Texi-Field given below

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Question No) 05 This is a subjective question, hence you have to write your answer in the Texi-Field given below. What happens to the premium you paid for the above option in the event you decide to let the option expire unexercised? What happens to this amount in the event you decide to exercise the option? [4 Marks]