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Answer :
The intrinsic value (IV) of a put option can be calculated by subtracting the strike price (X) from the current price of the underlying asset (S). In this case, the current price (S) is $70 and the strike price (X) is $100.
Since the current price (S) is lower than the strike price (X), the put option is in-the-money, meaning it has intrinsic value. The intrinsic value of a put option is the amount by which the strike price exceeds the current price. Therefore, the intrinsic value (IV) of the put option can be calculated as follows:
IV = X - S
= $100 - $70
= $30
So, the intrinsic value of the put option in this scenario is $30.
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