You recently purchased three put option contracts on Guillepsi stock with an exercise price of $42.50.What is the total intrinsic value of these contracts if the stock is currently selling for $45 a share?

Name: You recently purchased three put option contracts on Guillepsi stock with an exercise price of $42.50.What is the total intrinsic value of these contracts if the stock is currently selling for $45 a share?
Brand: Quizplus
Rating: 4.8 (51 reviews)

Question

Quizplus · Accepted Answer

The intrinsic value is equal to zero because the puts are out-of-the-money.

You Recently Purchased Three Put Option Contracts on Guillepsi Stock