The value of a put option at expiration is
A) Max [0, S(T) - X]
B) Max [0, X - S(T)]
C) Min [0, S(T) - X]
D) Min [0, X - S(T)]
E) X

Name: The value of a put option at expiration is A) Max [0, S(T) - X] B) Max [0, X - S(T)] C) Min [0, S(T) - X] D) Min [0, X - S(T)] E) X
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Question

Quizplus · Accepted Answer

At expiration, the value of a put option is the maximum of zero or the strike price (X) minus the stock price at expiration (S(T)), which is Max [0, X - S(T)].

The Value of a Put Option at Expiration Is