The intrinsic value of an in-the-money put option is equal to
A)the stock price minus the exercise price.
B)the put premium.
C)zero.
D)the exercise price minus the stock price.
E)None of the options

Question

Quizplus · Accepted Answer

The intrinsic value of an in-the-money put option contract is the strike price less the stock price, since the holder can buy the stock at the market price and sell it for the strike.

The Intrinsic Value of an In-The-Money Put Option Is Equal