A 3-month put has a strike price of $50. The underlying stock's price is $48.75. What is the intrinsic value of this put?
A)$0
B)$.90
C)$1.25
D)$2.30
E)$3.60

Name: A 3-month put has a strike price of $50. The underlying stock's price is $48.75. What is the intrinsic value of this put? A)$0 B)$.90 C)$1.25 D)$2.30 E)$3.60
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Question

Quizplus · Accepted Answer

The intrinsic value of a put option is the strike price minus the stock price. In this case, the intrinsic value is $50 - $48.75 = $1.25. Therefore, the correct answer is C.

A 3-Month Put Has a Strike Price of $50