KD Industries stock is currently trading at $32 per share.Consider a put option on KD stock with a strike price of $30.The intrinsic value of this put option is:
A)$0.
B)-$2.
C)$2.
D)$30.

Question

Quizplus · Accepted Answer

The intrinsic value of a put option is the difference between the strike price and the current stock price, if the difference is positive. In this case, the strike price is $30 and the current stock price is $32, so the intrinsic value is $32 - $30 = $2.

KD Industries Stock Is Currently Trading at $32 Per Share