Considering a put option, an increase in the strike price:
A)Causes the intrinsic value of the option to decrease.
B)Causes the intrinsic value of the option to increase.
C)Causes the value of the option to decrease.
D)Makes the option worthless.

Question

Quizplus · Accepted Answer

An increase in the strike price of a put option increases its intrinsic value because the option gives the holder the right to sell the underlying asset at a higher price.

Considering a Put Option, an Increase in the Strike Price