The intrinsic value of a put depends on
1. the strike price
2. the price of the stock
3. the term on the put
A)1 and 2
B)1 and 3
C)2 and 3
D)all of the above

Question

Quizplus · Accepted Answer

The intrinsic value of a put option depends on the strike price and the price of the underlying stock. It is calculated as the maximum of zero or the strike price minus the stock price. The term or time to expiration affects the time value, not the intrinsic value.

The Intrinsic Value of a Put Depends on