A put option with several months until expiration has a strike price of $55 when the stock price is $50. The option has ________ intrinsic value and ________ time value.
A) negative; positive
B) positive; positive
C) zero; zero
D) zero; positive

Question

Quizplus · Accepted Answer

The Answer of A put option with several months until expiration has a strike price of $55 when the stock price is $50. The option has ________ intrinsic value and ________ time value.
A) negative; positive
B) positive; positive
C) zero; zero
D) zero; positive

A Put Option with Several Months Until Expiration Has a Strike