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The value of a put option with a $50 exercise price purchased for $10 would be determined at expiration based on the stock price. If the stock is at $0, the put option would be worth $50 as you could buy the stock at $0 and sell it at $50. If the stock is worth $50, the put option would be worthless since you could just sell or buy the stock at that price. As the stock price increases above $50, the put option becomes worthless. This is shown in the payoff diagram, focusing on value at expiration.
