A 6-month put option on Makler Corp.'s stock has a strike price of $45 and sells in the market for $8.90.Makler's current stock price is $41.What is the exercise value of the option?
A)$2.62
B)$2.92
C)$3.24
D)$3.60
E)$4.00

Question

Quizplus · Accepted Answer

The exercise value of a put option is the difference between the strike price and the current stock price, if the stock price is below the strike price. Here, it is $45 - $41 = $4.00.

A 6-Month Put Option on Makler Corp