A 6-month put has a strike price of $32.50. The underlying stock's price is $31.10. What is intrinsic value of this put?

Name: A 6-month put has a strike price of $32.50. The underlying stock's price is $31.10. What is intrinsic value of this put?
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Question

Quizplus · Accepted Answer

The intrinsic value of a put option is calculated as the strike price minus the current stock price, but only if the result is positive. Here, it's $32.50 - $31.10 = $1.40.

A 6-Month Put Has a Strike Price of $32