Q563
Intrinsic value of put option is
A.
exercise price // stock price
B.
exercise price - stock price
AnswerC.
exercise price + stock price
D.
exercise price x stock price
Answer: Option B
Solution
Answer: Option B
Solution:
Intrinsic value of put option is exercise price - stock price. For an in-the-money put option, the intrinsic value equals the stock option's strike price minus the price of the underlying stock.