Chapter 03 · Section 3.1

August put

This option is traded on a stock whose current market price is $ 153.00. The current month is May. The options expire in August.

What is the intrinsic value of this option?

a) $ -7
• b) $ 0
  No. This would be true if this were a call option. However, it is a put option.
  c) $ 7
  d) $ 10.50

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