The intrinsic value of a put establishes the put's maximum price.

Name: The intrinsic value of a put establishes the put's maximum price.
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The intrinsic value of a put option represents the amount by which the option is in-the-money (strike price above the current market price), not the maximum price of the put. The put's price can also include time value and implied volatility.

The Intrinsic Value of a Put Establishes the Put's Maximum