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Value of a put option at expiry

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Description

Formula for the calculation of the value of a put option at expiry.

Formula

\[ P_{t}=max(0,E-S_{t}) \ \]

Legend

\(E\ \)        Option strike price
\(P_{T}\ \)        Value of the put at expiry date T
\(S_{T}\ \)        Price of the underlying at expiry date T