Prior to expiration
A)the intrinsic value of a put option is greater than its actual value.
B)the intrinsic value of a put option is always positive.
C)the actual value of a put option is greater than the intrinsic value.
D)the intrinsic value of a put option is always greater than its time value.
E)none of the above.

Question

Quizplus · Accepted Answer

The actual value (market price) of a put option includes both its intrinsic value and time value, making it typically greater than just the intrinsic value alone prior to expiration.

Prior to Expiration