A 6-month put has a strike price of $42.50. The underlying stock's price is $40.20. What is the intrinsic value of this put?
A) $0.00
B) $0.90
C) $1.80
D) $2.30
E) $3.60

Name: A 6-month put has a strike price of $42.50. The underlying stock's price is $40.20. What is the intrinsic value of this put? A) $0.00 B) $0.90 C) $1.80 D) $2.30 E) $3.60
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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. Here, it is $42.50 - $40.20 = $2.30.

A 6-Month Put Has a Strike Price of $42