It may be advantageous to exercise a put option
A) early if it is in the money.
B) early if it is out of the money.
C) only on the expiration date.
D) if the price of the put is below the intrinsic value.

Question

Quizplus · Accepted Answer

It is advantageous to exercise a put option early if it is in the money because the holder of the put option will be able to sell the underlying asset at a higher price than its current market value. This will allow the holder to lock in a profit and avoid any potential losses from a further decline in the asset's price.

It May Be Advantageous to Exercise a Put Option