In late November, Karen bought FIB February puts with a strike price of $25. The ask price of the put was $281. The current price of FIB shares is $28.40. The intrinsic value of the put is
A) $340.
B) $(340).
C) $(621).
D) $0.00.

Question

Quizplus · Accepted Answer

The intrinsic value of a put option is calculated as the strike price minus the current stock price, but only if this value is positive. Since the current stock price ($28.40) is higher than the strike price ($25), the intrinsic value is $0.00, as the option is out of the money.

In Late November, Karen Bought FIB February Puts with a Strike