The intrinsic value of an out-of-the-money put option is equal to
A) the stock price minus the exercise price.
B) the put premium.
C) zero.
D) the exercise price minus the stock price.

Question

Quizplus · Accepted Answer

The intrinsic value of an out-of-the-money put option is zero because the stock price is above the exercise price, making it unfavorable to exercise the option.

The Intrinsic Value of an Out-Of-The-Money Put Option Is Equal