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The value of a put option with a $50 exercise price is dependent on the stock price at expiration. If the stock price goes to zero, the put option is worth $50 as you can buy the stock at zero and sell it at $50. If the stock price is $50, there is no need to exercise the option. However, if the stock price is above $50, the put option becomes worthless. The payoff diagram reflects the value at expiration.
