The intrinsic value of an at-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 are correct.

Question

Quizplus · Accepted Answer

The intrinsic value of an at-the-money put option is zero because the stock price is equal to the exercise price, meaning there's no inherent profit to exercising the option.

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