A put has fundamental value as long as
A) the market price of the underlying financial asset has a positive value.
B) the market price of the underlying financial asset is less than the strike price.
C) the strike price of the put is greater than the time premium of the put.
D) the strike price of the put is less than the market value of the underlying asset.

Question

Quizplus · Accepted Answer

A put option has fundamental (intrinsic) value when the market price of the underlying asset is below the strike price, allowing the holder to sell the asset at a price higher than the current market price.

A Put Has Fundamental Value as Long as